Banks and the political economy of the sovereign debt crisis in Italy and Spain. CES Papers - Open Forum #18, 2013-2014

This paper sets out to explain why Spain experienced a full-fledged sovereign debt crisis and had to resort to euroarea financial assistance for its banks, whereas Italy did not. It undertakes a structured comparison, dissecting the sovereign debt crisis into a banking crisis and a balance of payments crisis. It argues that the distinctive features of bank business models and of national banking systems in Italy and Spain have considerable analytical leverage in explaining the different scenarios of the crises in each country. This ‘bank-based’ analysis contributes to the flourishing literature that examines changes in banking with a view to account for the differentiated impact of the global banking crisis first and the sovereign debt crisis in the euroarea later.

Asian Middle Classes - Drivers of Political Change? Asia Policy Brief 2014/06, November 2014

Asia watchers have been kept exceptionally busy by recent political developments in the region. An unprecedented landslide victory in India’s general elections, pro-democracy protests in Hong Kong, close elections in Indonesia, a coup in Thailand – the list goes on. As unrelated as these events appear, analysts may find a missing link among a social group that is currently exploding in numbers: Asia’s middle classes. Often discussed simply in terms of its economic potential, Asia’s middle-income population is also flexing its political muscle. A closer look at its influence throughout the region in recent months seems to confirm for the field of politics what economists have known for some time: The rise of the Asian middle classes constitutes one of the most fundamental transformations of our time. The consequences remain to be seen.