Preparedness, Crisis Management and Policy Change: The Euro Area at the Critical Juncture of 2008–2013

Benjamin Braun

  • This article contributes to the literature on ideational and institutional change at critical junctures more generally, and in the context of economic crises in particular.

  • In the context of explosive economic crises critical junctures should be conceptualised as consisting of two distinct phases—a phase of emergency crisis management and a subsequent phase of purposeful institution building.

  • The analytical significance of the crisis management phase lies in its tendency to create path dependencies for subsequent ideational entrepreneurs and institution building efforts.

  • Crisis management is always ‘bricolage’. However, in order to understand why certain tools are ‘at hand’ during a crisis, one needs to take into account the variable of crisis preparedness. Contingency planning for non-normal times is a constitutive aspect of any economic policy paradigm.

  • The empirical analysis shows that the euro area's lack of preparedness caused the ECB to assume a dominant position during the emergency phase of the crisis. This windfall gain in power for the ECB has already begun to shape the future institutional architecture of the EMU

link: here

This project receives funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie Grant Agreement No 722826.