Global crises: Is the Keynesian recipe relevant if applied under a global governance?

Tamás Szentes ()
Additional contact information
Tamás Szentes: Corvinus University of Budapest Department of World Economy, Faculty of Economics, Hungary

Society and Economy, 2013, vol. 35, issue 3, 273-297

Abstract: Keynesian policy was quite successful in the post-war decades in Western Europe, but by the late 1960s lost its efficiency due to changes in conditions rather than its mistaken logic. The lesson from the first global crisis erupting in early 1970s and also from the subsequent several crises since then is that the increasing crisis propensity of the world economy is rooted in its inherent disequilibria stemming from deep inequalities, asymmetrical interdependencies and disintegrated socio-economic structures. In view of the failure of the prevailing methods of crisis management, particularly those undifferentiated, antisocial austerity measures corresponding to a neo-liberal monetarist concept which neglects this lesson, many economists prefer the Keynesian recipe. However, since global crises need global solution, and the spread of conspicuous consumption modify the demand constraint, its application must be adjusted to reality, and requires some global governance which may pave the way for a global oeco-social market economy.

Keywords: globalisation; asymmetrical interdependencies; conspicuous consumerism; austerity measures; welfare state; oeco-social market economy; global governance; countervailing power (search for similar items in EconPapers)
JEL-codes: F02 F42 (search for similar items in EconPapers)
Date: 2013
Note: This paper is mostly based on some earlier writings of the author, but brings the conclusions further and reflects his rethinking of the revisited topics in the light of new phenomena, and under the spiritual influence of the excellent booklet of Richard Jolly et al. (2012).
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.akademiai.com/content/x6746x2027308272/fulltext.pdf (application/pdf)
subscription

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aka:soceco:v:35:y:2013:i:3:p:273-297

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Society and Economy is currently edited by Szent-Iványi, Balázs

More articles in Society and Economy from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().