Conflicting Incentives for Public Support for EMU

Brigitte Granville and Dominik Nagly

Manchester School, 2015, vol. 83, 142-157

Abstract: type="main">

We analyse how government policy can exert a positive influence on public attitudes towards the Economic and Monetary Union given the existing fiscal policy framework and thus increase the likelihood of survival of the Eurozone. Results from applying the Brender and Drazen (‘Consolidation of New Democracy, Mass Attitudes, and Clientelism’, The American Economic Review, Vol. 99, No. 2, pp. 304–309) political economy model indicate the extent of the difficulty of maintaining public support for the monetary union.

Date: 2015
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