Stagnation policy in the Eurozone and economic policy alternatives: A Steindlian/neo-Kaleckian perspective
No 10/17, Working Papers from Sapienza University of Rome, DISS
Empirically, the macroeconomic institutions and the macroeconomic policy approach in the Eurozone have failed badly, both in terms of preventing the global financial and economic crisis from becoming a euro crisis and in generating a rapid recovery from the crisis, in particular. In this paper I will argue that the dominating macroeconomic policy regime in the Eurozone can be seen as a version of what Steindl (1979) had called ‘stagnation policy’. To underline this argument, I will provide a simple Steindlian distribution and growth model in order to identify the main channels through which stagnation policy affects accumulation and productivity growth. This will also provide a set of elements of a Steindlian anti-stagnation policy. Against this theoretical background I will then examine the macroeconomic institutions and the macroeconomic policy approach of the Eurozone which has been based on the New Consensus Macroeconomics (NCM) and I will highlight its main deficiencies. This will then provide the grounds for an outline of an alternative macroeconomic policy approach for the specific institutional setup of the Eurozone based on a post-Keynesian/Steindlian/neo-Kaleckian approach.
Keywords: Stagnation; stagnation policy; Eurozone; policy alternatives; Steindl. (search for similar items in EconPapers)
JEL-codes: E02 E11 E12 E61 E63 E64 E65 F45 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-pke
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Journal Article: Stagnation policy in the Eurozone and economic policy alternatives: A Steindlian/neo-Kaleckian perspective (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:saq:wpaper:10/17
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