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Is my crown better than your euro?: exchange rates and public opinion on the European single currency

Hobolt, Sara and Leblond, Patrick (2009) Is my crown better than your euro?: exchange rates and public opinion on the European single currency. European Union Politics, 10 (2). pp. 202-225. ISSN 1465-1165

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Abstract

This article examines the influence of exchange rate fluctuations on public support for the euro. Existing studies of the two euro referendums in Denmark and Sweden have explained the outcomes primarily in terms of static factors, thereby ignoring the fact that support fluctuates over time. This article provides an analysis of the short-term dynamics in public support for the euro in the period leading up to the referendums. We argue that exchange rate fluctuations matter, because people attach symbolic value to their national currency and are less likely to surrender a strong currency. They are also less willing to accept the euro when it is seen as weak vis-à-vis other world currencies. Our case-study and time-series analyses of the two euro campaigns corroborate these propositions.

Item Type: Article
Official URL: http://eup.sagepub.com/
Additional Information: © 2009 The Authors
Library of Congress subject classification: H Social Sciences > HG Finance
J Political Science > JA Political science (General)
Sets: Departments > European Institute
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 29 Feb 2012 11:43
URL: http://eprints.lse.ac.uk/42069/

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