Unhappy families are all alike: Minskyan cycles, Kaldorian growth, and the Eurozone peripheral crises

Alberto Bagnai

No 1301, a/ Working Papers Series from Italian Association for the Study of Economic Asymmetries, Rome (Italy)

Abstract: It is frequently claimed that the economic and financial crises in the Eurozone peripheral countries depend on different, country-specific causes. In one case the crisis would depend on a real estate bubble (Ireland, Spain), in another on deceitful government manipulating the national accounts (Greece), in still another on corrupted government postponing essential reforms (Italy). While these claims can always be supported by anecdotal evidence, one may wonder whether a unified framework exists that provides a more consistent explanation of the most massive failure in macroeconomic management since 1929. In this paper we try to interpret the Eurozone peripheral crises in the light of the Minskyan cycle theory, and in particular of its recent applications to developing countries crises. A closer look at the pattern of the macroeconomic fundamentals shows that the different Eurozone crises are actually consistent with this unified framework, thereby providing some important lessons to European policy makers.

Keywords: Eurozone; Financial crisis; Exchange rate regimes; Post-Keynesian economics. (search for similar items in EconPapers)
JEL-codes: E12 F36 G01 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2013-07
New Economics Papers: this item is included in nep-eec, nep-fdg, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ais:wpaper:1301

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