Since the 1990s, economic policies in Europe and elsewhere, have been based on the theoretical and practical ideas embedded in the Maastricht Treaty: public debt and deficit must be reduced, even if this implies severe austerity. The main goal of this policy, growth with a decrease in public debt, did not work. Although the Maastricht Treaty framework received a wide consensus in the academic world as well in European politics, a few brave scholars stood up since the beginning to show its fallacies. In this article, we will discuss the critiques that Pasinetti made to the set-up of the EU economic policy, then we will connect the fate of public and private debt and finally we will explain why continuing with austerity will condemn Europe to anemic growth and political irrelevance.

Esposito, L., Halevi, J., Austerity and Financialization: Is There Another Way? The Pasinetti Suggestion, <<INTERNATIONAL JOURNAL OF POLITICAL ECONOMY>>, 2024; 53 (3): 252-261. [doi:https://doi.org/10.1080/08911916.2024.2391199] [https://hdl.handle.net/10807/289956]

Austerity and Financialization: Is There Another Way? The Pasinetti Suggestion

Esposito, Lorenzo
;
2024

Abstract

Since the 1990s, economic policies in Europe and elsewhere, have been based on the theoretical and practical ideas embedded in the Maastricht Treaty: public debt and deficit must be reduced, even if this implies severe austerity. The main goal of this policy, growth with a decrease in public debt, did not work. Although the Maastricht Treaty framework received a wide consensus in the academic world as well in European politics, a few brave scholars stood up since the beginning to show its fallacies. In this article, we will discuss the critiques that Pasinetti made to the set-up of the EU economic policy, then we will connect the fate of public and private debt and finally we will explain why continuing with austerity will condemn Europe to anemic growth and political irrelevance.
2024
Inglese
Esposito, L., Halevi, J., Austerity and Financialization: Is There Another Way? The Pasinetti Suggestion, <<INTERNATIONAL JOURNAL OF POLITICAL ECONOMY>>, 2024; 53 (3): 252-261. [doi:https://doi.org/10.1080/08911916.2024.2391199] [https://hdl.handle.net/10807/289956]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/289956
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