{"title":"Europe's Crisis Without End: The Consequences of Neoliberalism","authors":"T. Palley","doi":"10.1093/CPE/BZT004","DOIUrl":"https://doi.org/10.1093/CPE/BZT004","url":null,"abstract":"This paper argues that the eurozone crisis is the product of a toxic neoliberal economic policy cocktail. The mixing of that cocktail traces all the way back to the early 1980s when Europe embraced the neoliberal economic model that undermined the incomeand demand-generation process via wage stagnation and widened income inequality. Stagnation was serially postponed by a number of developments, including the stimulus from German re-unification and the low interest rate convergence produced by creation of the euro. The latter prompted a 10-year credit and asset price bubble that created fictitious prosperity. Postponing stagnation in this fashion has had costs because it worsened the ultimate stagnation by creating large build-ups of debt. Additionally, the creation of the euro ensconced a flawed monetary system that fosters public debt crisis and the political economy of fiscal austerity. Lastly, during this period of postponement, Germany sought to avoid stagnation via export-led growth based on wage repression. That has created an internal balance of payments problem within the eurozone, which is a further impediment to resolving the crisis. There is a way out of the crisis. It requires replacing the neoliberal economic model with a structural Keynesian model; remaking the European Central Bank so that it acts as a government banker; having Germany replace its export-led growth wage suppression model with a domestic demand-led growth model; and creating a pan-European model of wage and fiscal policy coordination that blocks race to the bottom tendencies within Europe. Countries, particularly Germany, can implement some of this agenda on their own. However, much of the agenda must be implemented collectively, which makes change enormously difficult. Moreover, the war of ideas in favor of such reforms has yet to be won. Consequently, both politics and the ruling intellectual climate make success unlikely and augur a troubled future.","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114270638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Fallacy of the Revised Bretton Woods Hypothesis","authors":"T. Palley","doi":"10.4337/9781802200089.00011","DOIUrl":"https://doi.org/10.4337/9781802200089.00011","url":null,"abstract":"Dooley et al. (2003) have argued that today’s international financial system has structural similarities with the earlier Bretton Woods (1946 – 71) arrangements and is stable. This paper argues that the comparison is misplaced and ignores fundamental microeconomic differences, and that today’s system is also vulnerable to a crash. Eichengreen (2004) and Goldstein and Lardy (2005) have also argued that the system is unsustainable. However, their focus is the sustainability of financing to cover the U.S. trade deficit, whereas the current paper focuses on inadequacies on the system’s demand side. The paper concludes with suggestions for a global system of managed exchange rates that should replace the current system – hopefully, before it crashes.","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"134 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133824538","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Capital Mobility and the Threat to American Prosperity","authors":"T. Palley","doi":"10.1080/05775132.1994.11471783","DOIUrl":"https://doi.org/10.1080/05775132.1994.11471783","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"116 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1994-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120954975","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The war of ideas: a comparison of the U.S. and Europe","authors":"","doi":"10.4337/9781802200089.00029","DOIUrl":"https://doi.org/10.4337/9781802200089.00029","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116958782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"THE WAR OF IDEAS","authors":"","doi":"10.4337/9781802200089.00027","DOIUrl":"https://doi.org/10.4337/9781802200089.00027","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"182 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123575510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The economics of globalization: problems and policy responses","authors":"","doi":"10.4337/9781802200089.00022","DOIUrl":"https://doi.org/10.4337/9781802200089.00022","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"197 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121716985","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Rise and Fall of Export-led Growth","authors":"T����� I. P�����","doi":"10.4337/9781802200089.00024","DOIUrl":"https://doi.org/10.4337/9781802200089.00024","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129944815","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"After the bust: The outlook for macroeconomics and Macroeconomic policy","authors":"T. Palley","doi":"10.4337/9781802200089.00028","DOIUrl":"https://doi.org/10.4337/9781802200089.00028","url":null,"abstract":"The current economic crisis offers an historic opportunity for change. The depth of the crisis means there will likely be a policy turn in a Keynesian and even Post Keynesian direction. However, there are profound political, intellectual and sociological obstacles blocking change in underlying economic thinking. In particular, the economics profession and its ideology remain unreformed, with little indication of change regarding core understandings concerning labor markets, globalization, and the theory of the natural rate of unemployment. The only place where there is evidence of substantive intellectual change is attitudes toward financial regulation. These obstacles will mute the policy response to the crisis, and if a deep crisis is averted will tend to encourage a return of the existing policies that have failed so disastrously.","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133867132","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Labor Perspective on Globalization","authors":"T. Palley","doi":"10.4337/9781802200089.00025","DOIUrl":"https://doi.org/10.4337/9781802200089.00025","url":null,"abstract":"A labor perspective on globalization sees the current structure of globalization as problematic. The main features of a labor perspective are: (1) Globalization is hurting many working families and increasing social divisions by raising income inequality; (2) The debate over the size of net gains or losses from globalization misses the point. Nor is it an issue of stopping globalization. Instead, the issue is that globalization is being wrongly constructed. (3) Globalization alone does not explain what has been happening to growth and income distribution, and globalization should not be looked at in isolation. Instead, globalization should be seen as a core element in the neoliberal economic paradigm that has been implemented post-1980. That means the debate over globalization is ultimately about changing the economic paradigm.","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"150 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134600950","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction: neoliberalism as a variety of capitalism","authors":"","doi":"10.4337/9781802200089.00007","DOIUrl":"https://doi.org/10.4337/9781802200089.00007","url":null,"abstract":"","PeriodicalId":424775,"journal":{"name":"Neoliberalism and the Road to Inequality and Stagnation","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125077575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}