Economic theory has recently begun to consider the economic impact of narratives. Narrative economics can also be extended to the analysis of the economic-political effect of narratives in the context of the European core-periphery divide, which intensified after the European sovereign-debt...

pt. 1. Transatlantic linkages -- pt. 2. The crisis and policies: a transatlantic perspective -- pt. 3. Institutions, rivalry, and the consequences for democracy -- pt. 4. The European currency and transatlantic relations.

The paper looks at the deep and the direct causes of the crisis in the Eurozone and considers what changes are necessary. It shows that, together withfinancial aspects, the Eurozone crisis stems from the difficulties of the real economy and the incompleteness of European institutions. The former...