This book proposes an alternative political economy framework in which to analyse the question of the credibility of international economic agreements, in general, and monetary arrangements in particular. The focus is on European monetary arrangements, from the establishment of the European Monetary System to the crisis of the Euro-zone. The analysis is predicated around the political economy of Italy¿s access and permanence in the Economic and Monetary Union (EMU). The author argues that the case of Italy, which made a concerted effort to join the EMU in the first wave, is particularly striking. Support for the single currency was widespread when it was introduced, yet something went wrong. Nowadays, its participation to the European monetary integration process cannot be easily taken for granted, especially after the vicissitudes of the Euro-zone crisis.

Chapter 1: Introduction: Between credibility and competitiveness.- Chapter 2: Exchange rate agreements: a socio-economic understanding of credibility.- Chapter 3: Competitiveness and EMU: The three phases of the quest for competitiveness.- Chapter 4: The crisis of the Euro-zone as a crisis of competitiveness.- Chapter 5: Consensus and credibility: Italy and the process of European Monetary integration. A closer look at the ERM of the EMS.- Chapter 6: Italy and the quest for competitiveness: From the crisis of the ERM to entry in the EMU.- Chapter 7: Italy and the loss of credibility: the crisis of the Euro-zone.- Chapter 8: Italy and the loss of competitiveness: between the underground economy and migration.- Chapter 8: Conclusion: Italy and the Euro: What went wrong?.

Leila Simona Talani is Professor of International Political Economy and Jean Monnet Chair of European Political Economy in the Department of European and International Studies at King's College London, UK. Her research centres on the consequences of the global financial crisis for the capitalist structures of European countries.