1st Edition

Capitalism: An Unsustainable Future?

Edited By Malcolm Sawyer, Jonathan Michie Copyright 2022
    324 Pages
    by Routledge

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    The four decades of neoliberalism, globalisation and financialisation have produced crises - financial and pandemic - and rising inequality. The climate emergency threatens the future of the planet. This book explores many dimensions of the background to these crises. There is the development of policy agendas to address the climate emergency. The rise in inequality is studied in terms of impacts of financialisation and the relationships between growth and inequality. The record of the neoliberal experiment in the USA is critically examined. The roles of financial institutions including public banks and micro-finance are explored, as is the need for improved financial oversight in the Economic and Monetary Union. The growth of global value chains has been a major aspect of globalisation, and the question is examined of whether such chains provide a ladder for development. Globalisation has also featured trade imbalances and large capital flows, and their causes and effects are examined with respect to China and South Africa respectively.

    This volume will be of great value to students, scholars and professionals interested in political economy, economic thought, climate change, sustainability and business studies.

    The chapters in this book were originally published as a special issue of the journal, International Review of Applied Economics.

    Introduction: The Future of Capitalism

    Jonathan Michie

    1. Financialisation, industrial strategy and the challenges of climate change and environmental degradation

    Malcolm Sawyer

    2. UK and other advanced economies productivity and income inequality

    Philip Arestis

    3. Financial oversight, the third flawed pillar of the European Union: the missing piece in the Arestis-Sawyer critique of EMU macropolicy design

    Gary A. Dymski and Annina Kaltenbrunner

    4. The industrial policy requirements for a global climate stabilization project

    Robert Pollin

    5. Challenges to neo-liberalism in the United States

    Samuel Rosenberg

    6. The U.S.–China trade imbalance and the theory of free trade: debunking the currency manipulation argument

    Isabella Weber and Anwar Shaikh

    7. Global value chains – a ladder for development?

    Petra Dünhaupt and Hansjörg Herr

    8. The impact of capital flow reversal shocks in South Africa: a stock- and-flow-consistent analysis

    Konstantin Makrelov, Rob Davies and Laurence Harris

    9. Do public banks reduce monetary policy power? Evidence from Brazil based on state dependent local projections (2000–2018)

    Nikolas Passos and André de Melo Modenesi

    10. Some new insights on financialization and income inequality: evidence for the US economy, 1947–2013

    Marwil J. Dávila Fernández and Lionello F. Punzo

    11. Determinants of social outreach of microfinance institutions

    Shakil Quayes and George Joseph

    12. Rethinking growth and inequality in the US: what is the role of measurement of GDP?

    Remzi Baris Tercioglu

    13. Sovereign currency and long-term interest rates

    Hongkil Kim

    14. Government expenditure and economic growth: a post-Keynesian analysis

    Pintu Parui

    15. Interpreting the world, in various ways – and changing it

    Jonathan Michie


    Malcolm Sawyer is Emeritus Professor of Economics, University of Leeds, UK and Retired Managing Editor of International Review of Applied Economics. He is author of 12 books, co-editor of over 30 books and over 250 academic journal articles and book chapters.

    Jonathan Michie is Professor of Innovation and Knowledge Exchange at the University of Oxford, UK where he is also President of Kellogg College. He is Managing Editor of International Review of Applied Economics, and Chair of the Universities Association for Lifelong Learning.