Norman's Lament: The Greek and Euro Area Crisis in Historical Perspective

Abstract

This article uses original and secondary archival sources to examine the value of the distinction between creditor and debtor states in explaining the behaviour of domestic elites in international and European macroeconomic and monetary cooperation, compared to variables like size and trade. It highlights the paradox and tension between changes in institutional forms and stronger incentives to cooperate (Montagu Norman's ‘new Europe’) and persisting patterns in strategic behaviour across space and over time. Central to this continuity is a fundamental asymmetry of power between creditor and debtor states. The imbalances that underpin creditor–debtor state relations also reveal the structural underpinnings of arguments from economic principle, ‘who argues what’ and receptiveness to economic ideas and thinkers. Not least, the case studies and arguments in the article offer fresh and different insights into British and French attitudes to European coordination.

Keywords:

• creditors
• debtors
• coordination
• economic governance
• Europe
• Keynes
• imbalances
• Montague Norman