Chapter

The Prospects for a Stable Euro‐Zone: A Strength–Strain Model

Kenneth Dyson

in The Politics of the Euro-Zone

Published in print September 2000 | ISBN: 9780199241651
Published online November 2003 | e-ISBN: 9780191599118 | DOI: http://dx.doi.org/10.1093/0199241651.003.0007
The Prospects for a Stable Euro‐Zone: A Strength–Strain Model

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This chapter aims to identify the critical variables conditioning the vulnerability of the Euro‐zone to systemic breakdown. It outlines a strength–strain model of stability, which points to an apparent paradox in the Euro‐zone. Underlying the model is a conception of the operation of the Euro‐zone as being neither wholly deterministic nor wholly chaotic, but as exhibiting a fundamental order subject to random influences. The subtlety and complexity of causes and the potential for instability is far more difficult than many analysts, whether pro‐ or anti‐EMU, are prepared to allow. It is this element of randomness that calls for resort to a strength–strain model, which explicitly sets out to classify the variables conducive to stability and instability—in particular, those relating to historical memories, the professional ideologies of central bankers, and the culture of capitalism.

Keywords: Euro‐zone; stability; strength–strain model

Chapter.  15911 words. 

Subjects: European Union

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