Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129023
Authors: 
Antal, Miklós
van den Bergh, Jeroen C.J.M.
Year of Publication: 
2014
Series/Report no.: 
WIFO Working Papers 464
Abstract: 
We raise fundamental questions about macroeconomics relevant to escaping the financial and economic crisis and shifting to a sustainable economy. First, the feasibility of decoupling environmental pressure from aggregate income is considered. Decoupling as a single environmental strategy is found to be very risky. Next, three main arguments for economic growth are examined: growth as progress, growth to avoid economic instability, and growth to offset unemployment due to labour productivity improvements. For each, we offer orthodox, heterodox and new responses. Attention is paid to progress indicators, feedback mechanisms affecting business cycles, and strategies to limit unemployment without the need for growth. Besides offering an economy-wide angle, we discuss the role of housing and mortgage markets in economic cyclicality. Finally, interactions between real economic and financial-monetary spheres are studied. This includes money creation, capital allocation and trade-offs between efficiency and operating costs of financial systems. Throughout, environmental and transition implications are outlined.
Subjects: 
financial-monetary system
GDP information
housing-mortgage markets
macroeconomics
positive and negative feedbacks
productivity trap
Document Type: 
Working Paper

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