Trust and Crisis Management in the European Union

CHAPTER 1. INTRODUCTION

CHAPTER 2. A THEORY OF TRUST AND COOPERATION

2.1.     Defining trust: an action based on accepting uncertainty and vulnerability2.2.     Forms of trust: interpersonal trust, institutional trust, systemic trust



2.3.    Rational sources for trust: insights from game theory (repetition, information sharing, external enforcement)

2.4.     Non-rational sources for trust: insights from sociology (routine, reflexivity, shared ideas, leap of faith)



2.5.     Measuring various forms of trust: quantitative and qualitative evidence 

CHAPTER 3. TRUST AND CRISIS MANAGEMENT

3.1.        The main actors and their objectives in crisis management (IMF, EU, national governments, public, financial market actors)3.2.   Modelling interactions among actors during the various stages of bailouts: negotiation of conditions, implementation and outcomes



3.3.        Applying the theory: the development of austerity spirals



3.4.        Hypotheses for the case studies given various degrees of trust among actors

CHAPTER 4. A BRIEF OVERVIEW OF THE EUROPEAN FINANCIAL CRISIS

4.1.      A Kindlebergerian approach to understanding financial crisis <4.1.1.   Monetary expansion: the unintended consequences of the euro (interest rate convergence and credit booms in the periphery)



4.1.2.   Development of vulnerability: postponement of structural reforms, real estate booms and current account imbalances4.1.3.   Shock: the subprime crisis in the US



4.1.4.   The spread of crisis from the Eastern part of the EU to the

Dóra Györffy is Professor of international political economy at the Péter Pázmány Catholic University and the Corvinus University of Budapest, Hungary. She holds a BA in Government from Harvard University, an MA and PhD in International Relations from Central European University and a Doctor of Science degree in Economics from the Hungarian Academy of Sciences.





Györffy's publications address fiscal consolidation and reforms, European monetary integration and financial crises. Her articles have appeared in English and Hungarian including in Acta Oeconomica, Hungarian Economic Review, Europe-Asia Studies, Post-Communist Economies, Society and Economy, and Zeitschrift für Staats-und Europawissenschaften. She is author of two books: Democracy and Deficits: The New Political Economy of Fiscal Management Reforms (2007) and Institutional Trust and Economic Policy: Lessons from the History of the Euro (2013).