The economic and financial dimensions of degrowth
Damir Tokic
Ecological Economics, 2012, vol. 84, issue C, 49-56
Abstract:
We respond to the call for future research on degrowth and specifically analyze the implications of economic degrowth on the monetary and financial system. We argue that any early indications of degrowth would cause the stock market to crash, which would trigger further deleveraging (contagion) and a deflation. As a result, the economy would implode, which would eventually allow for a new rapid growth cycle, given the likely extraordinary fiscal and monetary policy response during the implosion. Thus, in our view, degrowth as an explicit strategy option is economically unsustainable and unfeasible. As a limitation, our analysis centers on the examples of unplanned crisis leading to an economic implosion, which imperfectly represent the idea of planned/voluntary degrowth.
Keywords: Degrowth; Stock market; Deflation; Deleveraging (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0921800912003734
Full text for ScienceDirect subscribers only
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:eee:ecolec:v:84:y:2012:i:c:p:49-56
DOI: 10.1016/j.ecolecon.2012.09.011
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().