
Contents
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2.1 Introduction 2.1 Introduction
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2.1.1 Moravcsik’s Liberal Intergovernmental (LIG) Theory 2.1.1 Moravcsik’s Liberal Intergovernmental (LIG) Theory
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2.1.2 Neo-Functionalism as an Endogenous Theory of Integration 2.1.2 Neo-Functionalism as an Endogenous Theory of Integration
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2.1.3 The European Financial Crisis as a Test Case 2.1.3 The European Financial Crisis as a Test Case
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2.2 Phase One, 1993–1999: The Run-up to 1999 is a State-Centric Story 2.2 Phase One, 1993–1999: The Run-up to 1999 is a State-Centric Story
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2.2.1 Political Origins of EMU 2.2.1 Political Origins of EMU
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2.2.2 Central Role of States and Intergovernmental Conferences 2.2.2 Central Role of States and Intergovernmental Conferences
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2.2.3 Views of US Academic Economists 2.2.3 Views of US Academic Economists
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2.2.4 The Limited Role of Labor Markets (Mobility and Wages) in the First Phase 2.2.4 The Limited Role of Labor Markets (Mobility and Wages) in the First Phase
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2.3 Phase Two, 1999–2009: From Fixing Exchange Rates to Outbreak of Crisis 2.3 Phase Two, 1999–2009: From Fixing Exchange Rates to Outbreak of Crisis
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2.3.1 A Common Interest Rate 2.3.1 A Common Interest Rate
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2.3.2 Expansion of Credit 2.3.2 Expansion of Credit
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2.3.3 Labor Productivity and Consumer Prices 2.3.3 Labor Productivity and Consumer Prices
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2.3.4 Competitiveness Problems 2.3.4 Competitiveness Problems
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2.3.5 Imbalances of Trade 2.3.5 Imbalances of Trade
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2.4 Phase Three: 2009 to Present 2.4 Phase Three: 2009 to Present
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2.5 Discussion 2.5 Discussion
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2.6 Conclusion 2.6 Conclusion
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References References
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2 “States Choose but Not Under Circumstances of Their Own Making”: A New Interpretation of the Integration Debate in Light of the European Financial Crisis
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Published:February 2016
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Abstract
What do mainstream theories of regional integration—neo-functionalism and liberal intergovernmentalism—tell us about the financial crisis in the Eurozone? One key difference between the two theories relies on the distinction between endogenous and exogenous forces driving the integration process. Neo-functionalism provides an endogenous theory while liberal intergovernmentalism relies on exogenous forces. The chapter’s main finding is that the crisis does not provide a decisive victory for either approach. While both theories are required for a full account, the process of integration and disintegration, concentrated in phases two and three, were largely endogenous. States have played and continue to play a central role in the crisis and attempts to resolve it, but they make choices neither under circumstances of their own choosing nor are they structured by exogenous events orthogonal to the process of integration.
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