This book explores the foundations of the current economic crisis. Offering a heterodox approach to interpretation it examines the policies implemented before and during the crisis, and the main institutions that shaped the model of advanced economies, particularly in the last two decades.
The first part of the book provides a theoretical analysis of the crisis. The roots of the ‘great recession’ are divided into fundamentals with origins in financial liberalisation, financial innovation and income distribution, and complementary or contributory factors such as the international imbalances, the monetary policy,and the role of credit rating agencies. Part II suggests various paths to recovery while emphasising that it will be necessary to develop alternative strategies for sustainable economic recovery and growth. These strategies will require genuine political support and a new 'great European vision' to address major issues concerning the EU such as unemployment, structural regional differences and federalism.
Drawing on various schools of thought, this book explains the complexities of the crisis through a wider evolutionary-institutional and heterodox framework.
Table of Contents
Part I: Crisis interpretation: A heterodox approach 1. Crisis and the analysis of Socio- economic- systems; an institutional perspective 2. Causes of the ‘Great Recession’ and Economic Policy Implications 3. Financial system and sustainable development 4. Financial Capitalism Trapped in "Impossible" Profit Rate. The infeasibility of a ‘usual’ profit rate, considering fictitious capital, and its redistributive, ecological, and political implications 5. The Battle of Ideas in the Eurozone Crisis Management: German Ordoliberalism versus Post-Keynesianism 6. From Economic Decline to the Current crisis. A comparison between Italy, France and Germany Part II: Exit perspectives and development strategies 7. Should we cut the welfare State in order to get out of the crisis? 8. The future of the euro 9. Consumption and credit in run-up to crisis and in the efforts to overcome recession 10. United in diversity – consequences for common Labour Market Policy in the times of crisis 11. A Cultural Political Economy of Crisis Recovery: (Trans-)National Imaginaries of ‘BRIC’ and the Case of China
Sebastiano Fadda is Professor of Economics and Director of the Research Center ASTRIL at the Department of Economics, University Roma Tre, Italy.
Pasquale Tridico is Professor of Economic Policy and Jean Monnet Chair at the Department of Economics, University Roma Tre, Italy.
Fadda and Tridico marshal diverse heterodox approaches interpreting the origins of the current European crisis (part I of the book) and discussing exit perspectives and political strategies (part II). Having put these pieces together in a volume, this book is both a forceful critique of (mainstream) economics as a discipline and of European crisis policies over the last years.
Svenja Flechtner, Turkish Economic Review