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Crisis in the Eurozone: Austerity and Economic Transformation

Author

Listed:
  • 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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    1. Jorge Uxó & Jesús Paúl & Eladio Febrero, 2011. "Current Account Imbalances in the Monetary Union and the Great Recession: Causes and Policies," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(5), pages 571-592, December.
    2. Willi Semmler & André Semmler, 2013. "The Macroeconomics of Fiscal Austerity in Europe," IMK Working Paper 122-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    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. Óscar Dejuán & Eladio Febrero & Maria Cristina Marcuzzo (ed.), 2011. "The First Great Recession of the 21st Century," Books, Edward Elgar Publishing, number 14193.
    5. Fogel,Robert William, 2004. "The Escape from Hunger and Premature Death, 1700–2100," Cambridge Books, Cambridge University Press, number 9780521004886, Enero-Abr.
    6. Palley,Thomas I., 2013. "From Financial Crisis to Stagnation," Cambridge Books, Cambridge University Press, number 9781107612464, Enero-Abr.
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    Citations

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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. Feng Zhao & Xuan Tan & Yanghua Huang & Zhixuan Feng, 2026. "Welfare Retrenchment, Government Expenditure Structure, and Economic Growth: A Perspective of Marx’s Capital Circulation Theory," Review of Radical Political Economics, Union for Radical Political Economics, vol. 58(1), pages 102-131, March.
    4. 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.
    5. Davide Gualerzi, 2026. "Book Review: The Capital Order: How Economists Invented Austerity and Paved the Way to Fascism," Review of Radical Political Economics, Union for Radical Political Economics, vol. 58(1), pages 172-176, March.
    6. 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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    Keywords

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    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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