Political economy is a discipline


The introduction of the euro as the single European currency met with considerable skepticism not only in the population, but also in politics and business, especially in Germany, the country with the most stable currency since 1950. But within a few years the acceptance values ​​of the new currency in Germany have increased significantly. The assessment by consumers and business, but also by representatives of science, has meanwhile turned in favor of the euro. In the meantime, the euro has even replaced the dollar as the most important investment currency. With the introduction of the euro, central questions and problems of the international political economy (IPÖ) can be exemplified. When the euro was introduced, in addition to fundamental economic questions, e.g. which exchange rates - fixed or flexible - are better suited to countering macroeconomic crises as appropriately as possible, there was also the political question of which exchange rate regime could better contribute to European unification. Two key questions were also: How independent do monetary policy institutions have to be, and what qualifies them to participate in monetary union? This led to the formulation of the Maastricht criteria and the European Stability Pact. The IPÖ also analyzes how the political decision in favor of such a reform was made and which positions prevailed with which interest calculation. Does the market dominate the state by completing the largest single market in the world, or was it a political victory over the market? And finally, one of the questions posed by the IPÖ is how the strong fluctuations in the exchange rate of the euro and the dollar can be explained. In addition to the economic exchange rate theories, political and institutional variables are also used to explain this.

1. Introduction - 2. Theoretical Traditions of International Political Economy - 3. Significant Topics of the IPÖ - 4. Summary

Tags: World economy, economic policy, globalization, IPÖ