From global imbalances to global reorganisations
AbstractThe world feels itself to be in transition, but to what is unclear. Will the liberal market model retain its normative primacy once some semblance of normality is restored, or will other varieties of capitalism, with a bigger role of the state, acquire more legitimacy? The answer depends partly on one's explanation for the current crisis. This essay argues, first, that global imbalances had too important a role to ignore, in contrast to a mainstream view that focuses on mistakes in monetary policy and financial regulation. It argues, second, that in light of global dynamics, the crisis is likely to become worse by early 2010--which, on the face of it, makes significant reorganisations of capitalism more likely. The third section lays out what should be done to reconfigure capitalism at national and international levels. The final section discusses the political economy of policy reforms in terms of the difficult translation from what should be done to what can be done. The broad conclusion is that in five years from now the liberal market model will have been restored to normative primacy and 'we must have more globalization' will again be the elite rallying cry; but the crisis will have left behind sufficient doubts about factual propositions and value priorities that political parties and economists advocating alternatives will have more scope than they have had for the past three decades. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 33 (2009)
Issue (Month): 4 (July)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.cje.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Thomas Goda, 2013. "The role of income inequality in crisis theories and in the subprime crisis," Working Papers PKWP1305, Post Keynesian Economics Study Group (PKSG).
- Hein, Eckhard, 2011.
"Distribution, 'financialisation' and the financial and economic crisis: Implications for post-crisis economic policies,"
IPE Working Papers
09/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Hein, Eckhard, 2011. "Distribution, ‘Financialisation’ and the Financial and Economic Crisis – Implications for Post-crisis Economic Policies," MPRA Paper 31180, University Library of Munich, Germany.
- Eckhard Hein, 2012.
"Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model,"
PSL Quarterly Review,
Economia civile, vol. 65(260), pages 11-51.
- Hein, Eckhard, 2011. "Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model," MPRA Paper 34115, University Library of Munich, Germany.
- Hein, Eckhard, 2011. "Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model," IPE Working Papers 11/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Jamie Morgan & Ioana Negru, 2012. "The Austrian perspective on the global financial crisis: a critique," Economic Issues Journal Articles, Economic Issues, vol. 17(2), pages 27-55, September.
- Eckhard Hein, 2013. "Finance-dominated Capitalism and Redistribution of Income: A Kaleckian Perspective," Economics Working Paper Archive wp_746, Levy Economics Institute, The.
- Miroslava FilipoviÄ‡, 2011. " Exigency Politics or New World Order?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(3), pages 373-391, September.
- Hein, Eckhard & Truger, Achim, 2010.
"Finance-dominated capitalism in crisis – the case for a Global Keynesian New Deal,"
21175, University Library of Munich, Germany.
- Hein, Eckhard & Truger, Achim, 2010. "Finance-dominated capitalism in crisis: The case for a Global Keynesian New Deal," IPE Working Papers 06/2010, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Eckhard Hein, 2013.
"The crisis of finance-dominated capitalism in the euro area, deficiencies in the economic policy architecture, and deflationary stagnation policies,"
Journal of Post Keynesian Economics,
M.E. Sharpe, Inc., vol. 36(2), pages 325-354, January.
- Eckhard Hein, 2012. "The Crisis of Finance-dominated Capitalism in the Euro Area: Deficiencies in the Economic Policy Architecture and Deflationary Stagnation Policies," Economics Working Paper Archive wp_734, Levy Economics Institute, The.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.