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Crisis in the Eurozone: Austerity and Economic Transformation

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  • Davide Gualerzi

Abstract

The paper presents an interpretation of austerity that sheds light on the crisis in the Eurozone. It argues that austerity is a long-term policy rather than an ill-conceived short-term remedy. To go beyond the by now familiar criticisms of austerity, we need to examine the crisis in its totality. Especially important are the impediments to a strong recovery driven by market incentives. This might ultimately undermine the very existence of the common currency and the future of the European Union. JEL Classification: E2, O4, B5.

Suggested Citation

  • Davide Gualerzi, 2017. "Crisis in the Eurozone: Austerity and Economic Transformation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(3), pages 394-409, September.
    • Handle: RePEc:sae:reorpe:v:49:y:2017:i:3:p:394-409
    DOI: 10.1177/0486613417703970
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    References listed on IDEAS

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    3. Dimitri B. Papadimitriou & Michalis Nikiforos & Gennaro Zezza, 2014. "Prospects and Policies for the Greek Economy," Economics Strategic Analysis Archive sa_feb_14, Levy Economics Institute.
    4. Palley,Thomas I., 2013. "From Financial Crisis to Stagnation," Cambridge Books, Cambridge University Press, number 9781107612464, October.
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    Cited by:

    1. Aidnik Martin, 2019. "Europe at the Crossroad: Decline or Reconstruction?," TalTech Journal of European Studies, Sciendo, vol. 9(4), pages 237-253, December.
    2. Missos, Vlassis & Domenikos, Charalampos & Pontis, Nikos, 2024. "Hardening the EU core-periphery lines, 2009–2019: Dependency, neoliberalism, welfare reformation and poverty in Greece," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 171-182.
    3. Vlassis Missos, 2021. "Introducing a Safety Net: The Effects of Neoliberal Policy on Welfare, Poverty, and the Net Social Wage during the Greek Crisis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(1), pages 58-76, March.
    4. Alfredo Arahuetes García & Gonzalo Gómez Bengoechea, 2022. "Back to the Future: Lessons from the 2009–2012 austerity policies for the aftermath of the COVID crisis," Global Policy, London School of Economics and Political Science, vol. 13(5), pages 751-766, November.

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    More about this item

    Keywords

    Eurozone; crisis; austerity; industrial transformation; advanced industrial economies; trade imbalances;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches

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