History
These two countries led the creation of the EMS in 1979 to counteract the instability caused by global exchange rate fluctuations.
Germany and France.
What 1991 treaty enshrined “one market, one money” despite referendum crises?
Maastricht Treaty
What is the core assumption of Growth models theory (2 capitalisms theory)?
different answers possible:
- National economies follow different capitalist logics
- Institutional mismatch between export-led North & demand-led South
What event triggered the starting point of European monetary integration
Several answers possible:
- Event: European Payments Union (EPU)
- Dynamic: Europeans needed to import goods, but their currencies weren’t accepted internationally
What is the Resilience and Recovery Facility (RRF)?
Response to the COVID-19 pandemic, provides both grants and loans
What is a key weakness of growth models (2 capitalisms) theory?
Downplays financial/global shocks.
Describe what the "Nixon Shock" refers to.
When central banks started redeeming dollar reserves for gold, the U.S. responded by ending gold convertibility in 1971.
Explain the "re-insurance" model that Schelkle proposes.
Fiscal solidarity as targeted, crisis-specific support rather than ongoing redistribution
How does Open Economy Politics explain the crisis?
Balance-of-payments crisis, driven by capital flows