Do Words Matter? The Impact of Communication on the PIIGS' CDS and Bond Yield Spreads during Europe's Sovereign Debt Crisis

The paper aims to shed light on the role of communication in the European debt crisis. It examines the effects of public statements by ECB Governing Council members, EU officials and national representatives on the PIIGS' CDS and bond yield spreads. The focus lies on dovish statements that signal strong determination in the rescue of indebted countries, and hawkish statements that indicate limited commitment to support the PIIGS and protect its creditors. The analysis of daily data for the period between January 1, 2009 and August 12, 2011 in an EGARCH framework suggests that communication by representatives of Germany, France, and the EU as well as ECB Governing Council members had an immediate impact on both types of securities. No effects.

Theorizing positioning strategies of secondary capital cities

Capital cities that are not the economic centers of their nations – so-called secondary capital cities (SSCs) – tend to be overlooked in the field of political science. Consequentially, there is a lack of research and resulting theory describing their political economy. This paper proposes a comparative research framework which analyzes how external pressures are influencing the relevant policy makers in the process of (re)positioning the SCC.

Repolitisations féministes et queer du cerveau

L’histoire des relations entre biologie et politique féministe est tendue et contradictoire. Cela paraît d’autant plus flagrant aujourd’hui à l’âge d’or des neurosciences qui ramènent les arguments de supériorité masculine, le caractère inéluctable des différences de genre et la prédominance de l’hétérosexualité à une affaire de cerveau. Dans cet article, nous analysons les points d’intersection propres aux sciences du cerveau et du féminisme. Ces deux champs de recherche entretiennent selon nous des rapports conflictuels mais parfois aussi productifs, y compris dans leurs rapports à l’activisme politique. Ces rapports peuvent être caractérisés en référence à trois directions de recherche principales : des « déstabilisations », des « reconstructions » et des « recontextualisations ». En guise de conclusion, nous terminons par quelques réflexions sur les conditions sociologiques de l’engagement dans une économie politique des neurosciences.[1] [1]Traduit de l’anglais par Marc Gagnepain. Pour une brève présentation de l’article et du dossier thématique dans lequel il s’inscrit, nous renvoyons le/la lecteur/trice à l’article introductif de Bovet, Kraus, Panese, Pidoux et Stücklin, « Les neurosciences à l’épreuve de la clinique et des sciences sociales. Regards croisés ».

Low-Income Developing Countries and WTO Litigation: Why Wake Up the Sleeping Dog?

The World Trade Organization (WTO) is one of the most judicialized dispute settlement systems in international politics. While a general appreciation has developed that the system has worked quite well, research has not paid sufficient attention to the weakest actors in the system. This paper addresses the puzzle of missing cases of least-developed countries initiating WTO disputes settlement procedures. It challenges the existing literature on developing countries in WTO dispute settlement which predominantly focuses on legal capacity and economic interests. The paper provides an argument that the small universe of ‘actionable cases’, the option of free riding and the assessment of the perceived opportunity costs related to other foreign policy priorities better explain the absence of cases. In addition (and somewhat counterintuitively), we argue that the absence of cases is not necessarily bad news and shows how the weakest actors can use the dispute settlement system in a ‘lighter version’ or in indirect ways. The argument is empirically assessed by conducting a case study on four West African cotton-producing countries (C4) and their involvement in dispute settlement.

Innovation, Coordination, and Positioning: Locational Policies of Secondary Capital City Regions

Capital cities that are not the economic centers of their nations - so-called secondary capital cities - tend to be overlooked in the field of political science. Consequentially, there is a lack of research and resulting theory describing their political economy and their formulated policies. This paper analyzes how secondary capital cities try to develop and position themselves through the formulation of locational policies. By linking three different theoretical strands - the Regional Innovation System approach, the concept of locational policies, and the regime perspective - this paper proposes a framework to study the the economic and political dynamics in secondary capital cites.

Germania: l’indomabile trading state

Basato su interviste con i principali attori tedeschi e su un’analisi della letteratura, l’articolo analizza lo sviluppo recente dell’economia tedesca e la strategia tedesca nell’affrontare la crisi dell’eurozona. La Germania è uno stato commerciale (trading state), la cui crescita è fortemente trainata dalle esportazioni. Fino agli anni novanta, rigidità istituzionali forti, nel sistema di relazioni industriali e nel sistema di protezione sociale, contribuivano a conciliare lo sviluppo delle esportazioni con una crescita armonica dei consumi interni, contribuendo cosi a ingabbiare la «tigre» tedesca. A partire dagli anni novanta, sia le relazioni industriali sia la protezione sociale sono state fortemente liberalizzate, stimolando ulteriormente la competitività estera e indebolendo i consumi interni. Il modello economico tedesco, cosi come è venuto profilandosi negli ultimi dieci anni, è alla base delle politiche di austerità che la Germania impone all’Europa. Tali politiche sono fortemente condivise dai partiti politici, dagli attori sociali e dall’opinione pubblica, e le probabilità che la strategia tedesca cambi sono minime.

The Crisis and Germany: The Trading State Unleashed

Based on interviews with the main German actors and on secondary sources, the article examines the recent development of the German political economy, and the German strategy vis-à-vis the Euro zone. Germany is a trading state whose economic growth is strongly export-led. Until the years 1990s, strong institutional rigidities, both in industrial relations and in the welfare state, contributed to reconcile export growth with household consumption, thus keeping the German “tiger” on a leash. From the early 1990s on, however, both industrial relations and social protections have been strongly liberalized, thus further stimulating external competitiveness and reducing the role of consumption in the German growth model. The unleashed trading state shapes the German response to the Euro crisis and the austerity policies that Germany imposes to Europe. These policies are strongly supported by political parties, social actors, and public opinion in Germany, and the likelihood that they change in the near future is minimal.

Bern's positioning strategies: Escaping the fate of a secondary capital city?

Bern is a classic example of a so-called secondary capital city, which is defined as a capital city that is not the primary economic center of its nation. Such capital cities feature a specific political economy characterized by a strong government presence in its regional economy and its local governance arrangements. Bern has been losing importance in the Swiss urban system over the past decades due to a stagnating economy, population decline and missed opportunities for regional cooperation. To re-position itself in the Swiss urban hierarchy, political leaders and policymakers established a non-profit organization called “Capital Region Switzerland” in 2010 arguing that a capital city should not be measured by economic success only, but by its function as a political center where political decisions are negotiated and implemented. This city profile analyses Bern's strategy and discusses its ambitions and limitations in the context of the city's history, socio-economic and political conditions. We conclude that Bern's positioning strategy has so far been a political success, yet that there are severe limitations regarding advancing economic development. As a result, this re-positioning strategy is not able to address the fundamental economic development challenges that Bern faces as a secondary capital city.

Services PTAs: Lessons from Practice

Presentation given by Pierre Sauvé at the international conference on the political economy of liberalising trade in services at the Hebrew University in Jerusalem