Neoliberal growth models, monetary union and the Euro Crisis : a post-Keynesian perspective

Stockhammer, Engelbert (2016) Neoliberal growth models, monetary union and the Euro Crisis : a post-Keynesian perspective. New Political Economy, 21(4), pp. 365-379. ISSN (print) 1356-3467

Full text available as:
[img] Text
Stockhammer-E-33059-AAM.pdf - Accepted Version

Download (160kB)


The paper offers an account of the Euro crisis based on post-Keynesian monetary theory and its typology of demand regimes. Neoliberalism has transformed social and financial relations in Europe but it has not given rise to a sustained profit-led growth process. Instead, growth has relied either on financial bubbles and rising household debt (‘debt-driven growth’) or on net exports (‘export-driven growth’). In Europe the financial crisis has been amplified by an economic policy architecture (the Stability and Growth Pact) that aimed at restricting the role of fiscal policy and monetary policy. This neoliberal economic policy regime in conjunction with the separation of monetary and fiscal spheres has turned the financial crisis of 2007 into a sovereign debt crisis in southern Europe.

Item Type: Article
Uncontrolled Keywords: Euro crisis, neoliberalism, European economic policy, European integration, financial crisis, sovereign debt crisis
Research Area: Economics and econometrics
Faculty, School or Research Centre: Faculty of Arts and Social Sciences (until 2017) > School of Economics, History and Politics (from November 2012)
Depositing User: Susan Miles
Date Deposited: 15 Jan 2016 10:01
Last Modified: 28 Sep 2017 09:28

Actions (Repository Editors)

Item Control Page Item Control Page