Crisis Management in the Eastern Mediterranean (Implications for Policymakers)

This article examines Greek-Turkish crisis behaviour in the Eastern Mediterranean over the past two decades. Crises are first defined and classified, after which a number of common misperceptions are then addressed in light of recent experience. Three broad categories of foreign policy crises are analyzed: 1) those involving ethnically related minorities across the border; 2) those with 'alien' minorities within borders; and 3) those with third countries involving territories and resources. The article examines whether crises are simply elite-driven or partly endorsed and motivated by mass publics in both countries, and whether Greek-Turkish crisis behaviour reflects enduring ethnic rivalries, 'genuine' security interests, or domestic political needs and norms. The article draws upon the Greek-Turkish experience of the past two decades to illuminate contemporary dilemmas and issues which policymakers face in this region.

The Euro as an International Currency: explaining puzzling first evidence from the foreign exchange markets

This paper presents evidence that the bid-ask spreads in euro rates increased relative to the corresponding bid-ask spreads in the German mark (DM) prior to the creation of the currency union. This comes with a decrease in transaction volume in the euro rates relative to the previous DM rates. The starkest example is the DM(euro)/yen rate in which the spread has risen by almost two-thirds while the volume decreased by more than one third. This outcome is surprising because the common currency concentrated market liquidity in fewer external euro rates and higher volume tends to be associated with lower spreads. We propose a microstructure explanation based on a change in the information environment of the FX market. The elimination of many cross currency pairs increased the market transparency for order flow imbalances in the dealership market. It is argued that higher market transparency adversely affects the inventory risk sharing efficiency of the dealership market and induces the observed euro spread increase and transaction volume shortfall.

The Mixed Fortunes of Irish Unions: Living with the Paradoxes of Social Partnership

We assess the fortunes of Irish unions since 1980 and, in particular, focus on the period of national social partnership since 1987. We argue that, structurally, unions have been weakened by a sharp decline in union density levels. In addition, labor law reform has not been as permissive as unions desired. However, on the other hand, we highlight that union membership in Ireland has never been higher and unions exert a strong influence over many areas of government policy. In conclusion, we argue that continuing with social partnership is the most viable option for Irish unions, though significant gains in union power are unlikely to happen.