Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181463
Authors: 
Hein, Eckhard
Year of Publication: 
2017
Series/Report no.: 
FMM Working Paper 5
Abstract: 
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 cri-sis 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 identi-fy 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 macro-economic 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 institu-tional setup of the Eurozone based on a post-Keynesian/Steindlian/neo-Kaleckian approach.
Subjects: 
stagnation
stagnation policy
Eurozone
policy alternatives
Steindl
JEL: 
E02
E11
E12
E61
E63
E64
E65
F45
Document Type: 
Working Paper

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