Hostages, free lunches and institutional gaps : the case of the European Currency Union

Research, Article, Preprint English OPEN
Günter Franke;
  • Related identifiers: doi: 10.1007/s11408-011-0176-8
  • Subject: hostages | European Currency Union, European Insolvency Charter, hostages, free lunch, externalization hypothesis | externalization hypothesis | European Insolvency Charter | European Currency Union | free lunch
    • jel: jel:F53 | jel:H60 | jel:E62 | jel:H30 | jel:E 62, F 36, F 53, H 30, H 60 | jel:F36
      ddc: ddc:330

This paper argues that the strong member states of the European Currency Union are hostages of a financially distressed member state so that they are compelled to provide financial support. Moreover, due to the dynamics of the interaction game, a debt relief is a free l... View more
  • References (2)

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    Rettungsmaßnahmen des Frühling 2010. Perspektiven der Wirtschaftspolitik 12, 2115-241. y

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