Peer-Reviewed Publications (click citation to download):
Caporaso, James, and Aslett, Kevin. “The Question of German Imbalances within the Eurozone: Competitiveness versus Savings Explanations?” International Trade, Politics, and Development. 2017, 1(1), 4-31.
This article uses trade data from Eurozone countries to test two popular explanations of trade imbalance (competitiveness and savings). We find that both explanations partially explain trade imbalances within the Eurozone and political-institutional differences between core and periphery Eurozone countries are the main culprits. We argue that although trade balances in GIIPS countries have on the whole recovered since the Euro crisis, institutional differences between core and periphery countries continue to inhibit trade re-balancing and the economic recovery in GIIPS countries.
This article, published directly after Brexit in a period of heightened euro-skepticism, attempts to answer the question: “Will the euro survive?” We answer this question in the affirmative and in doing so argue that the continuation of the Eurozone is different from the question of whether the Eurozone should have been created in the first place. We summarize the main criticisms of the Eurozone and argue there are reasons for the Eurozone’s current existence beyond its effectiveness as a currency union (economic costs, path-dependent achievements that are costly to reverse, and political benefits). This explains why the Eurozone weathered the euro crisis despite heavy criticism and why it is likely to stay intact moving forward.