Post-Keynesian Views of the Crisis and its Remedies [Paperback]

At the end of the 20^thcentury, mainstream economics was based on theories which viewed capitalism as a self-regulating system, whereby crises come about due to external shocks and would be automatically corrected by the price mechanism if it was flexible enough. Post-Keynesian economists, however, consider that the business cycle and the crises are endogenously generated. They recommend active policies as a response, though the remedies may be worse than the illness if they are not applied at the right moment and in the right proportions.

The first great recession of the 21^stcentury offers post-Keynesian economists an opportunity to prove the realism of their models. It is also a chance to make theoretical improvements, to abandon some hypotheses and to introduce new ones.

This book, from a top group of international economists, analyzes the causes, consequences and evolution of the crisis from a variety of post-Keynesian perspectives. It then presents a case for realistic and essential remedies. The book is both theoretical and applied, with a global reach and a particular focus on the European debt crisis.

Introduction?scar Deju?n, Eladio Febrero and Jorge Ux  Part I. The financial side: the burden of debt and the loss of confidence  1. Finance-dominated capitalism, re-distribution and the financial and economic crises - a European perspective Eckhard Hein  2. The world in balance sheet recession: causes, cures and politics Richard C. Koo  3. The failure of the new macroeconomic consensus: from non-ergodicity to the efficient markets hypothesis and back again Nigel F.B. Allington, John S.L. McCombie and Maureen Pike 4. The debt trap ?scar Deju?n  II. The balance of payments constraint. Trade deficitsló¼