Seminar

Thursday 25 May 2017

In collaboration with Dipartimento di Economia, Università Roma Tre

Stagnation policy in the Eurozone and economic policy alternatives: A Steindlian/neo-Kaleckian perspective

Eckhard Hein (Berlin School of Economics and Law)

Abstract:
Empirically, the macroeconomic institutions and the macroeconomic policy approach in the Eurozone have badly failed, 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.

Dipartimento di Economia - Via Silvio D'Amico 77, Roma
h 14:30 - room 14



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