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Dymski, GA orcid.org/0000-0001-9667-2693 and Kaltenbrunner, A orcid.org/0000-0003-3519-5197 (2021) Financial oversight, the third flawed pillar of the European Union: the missing piece in the Arestis-Sawyer critique of EMU macropolicy design. International Review of Applied Economics, 34 (3-4). pp. 371-388. ISSN 0269-2171
Abstract
This paper presents a chronological survey of the 20 academic papers that Malcolm authored or co-authored between 1997 and 2017 on the flawed design – and hence flawed implementation – of the European Monetary Union (EMU)’s macroeconomic policy pillars. We augment his analyses by pointing out a third – complementary – design flaw: the EMU’s two-tiered structure of financial regulation and oversight. While this financial pillar aimed at reconciling Europe’s historically bank-based financial systems with large European banks’ entry into global financial competition, it created a combustible mix when combined with the EMU’s macroeconomic-policy pillars. The Global Financial Crisis lit the fire: member-nations, forced to rescue their domestically-chartered too-big-to-fail megabanks, had to adopt austerity policies that both slowed the pace of post-crisis economic growth and eroded support for pro-Union political leaders. Only marginal changes have been made in these policy pillars post-crisis. Consequently, Europe faces a financial bifurcation point: either to continue ‘whatever it takes’ support for its megabanks, or to rethink both its financial architecture and its macroeconomic and financial policy pillars.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. |
Keywords: | European Monetary Union; macroeconomic and financial policy pillars; financial crisis; megabanks; Malcolm Sawyer |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 24 Mar 2021 16:15 |
Last Modified: | 08 Sep 2022 00:13 |
Status: | Published |
Publisher: | Routledge |
Identification Number: | 10.1080/02692171.2021.1894657 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:172471 |
Available Versions of this Item
- Financial oversight, the third flawed pillar of the European Union: the missing piece in the Arestis-Sawyer critique of EMU macropolicy design. (deposited 24 Mar 2021 16:15) [Currently Displayed]