POLI 358 Lecture 22: Poli 358- Lecture 22
26 Apr 2019
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Poli 358 lecture 22: the eu enlargement: causes and effects. The effect of a single currency on trade: reduce uncertainty- no exchange rate volatility, reduce transaction costs. Uk, denmark and ireland 1970s: six original member countries and little by little, more and more countries joined- Uk decided to stay out in 1958 and then joined in 1970 (domino theory). Similar story for denmark and ireland- uncontroversial enlargement- not an institutionally problematic country. Greece, spain and portugal (80s: more controversial;- they were authoritarian countries. Austria, finland and sweden 90s: less controversial- Eastern enlargement (2002: focus on this- controversial and there were different preferences. How can you explain that a trade bloc expands: demand side. Accept the laggers only when they are able to deal with the deep integration. Political economy explanations that explain why we saw the big bang enlargement post 2002.
