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Unhappy families are all alike: Minskyan cycles, Kaldorian growth, and the Eurozone peripheral crises

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  • Alberto Bagnai

    (Department of Economics, Gabriele d'Annunzio University)

Abstract

It is frequently claimed that the economic and financial crises in the Eurozone peripheral countries depend on different, country-specific causes. In one case the crisis would depend on a real estate bubble (Ireland, Spain), in another on deceitful government manipulating the national accounts (Greece), in still another on corrupted government postponing essential reforms (Italy). While these claims can always be supported by anecdotal evidence, one may wonder whether a unified framework exists that provides a more consistent explanation of the most massive failure in macroeconomic management since 1929. In this paper we try to interpret the Eurozone peripheral crises in the light of the Minskyan cycle theory, and in particular of its recent applications to developing countries crises. A closer look at the pattern of the macroeconomic fundamentals shows that the different Eurozone crises are actually consistent with this unified framework, thereby providing some important lessons to European policy makers.

Suggested Citation

  • Alberto Bagnai, 2013. "Unhappy families are all alike: Minskyan cycles, Kaldorian growth, and the Eurozone peripheral crises," a/ Working Papers Series 1301, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
  • Handle: RePEc:ais:wpaper:1301
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Il nuovo filosofo di Treviri
      by Alberto Bagnai in Goofynomics on 2014-10-10 11:51:00
    2. Merkel: "Greece is no longer of systemic importance". Translation.
      by Alberto Bagnai in Goofynomics on 2015-01-05 00:28:00
    3. Eurozona: quelli che ‘nel 1997 i tassi erano al 14%’
      by Alberto Bagnai in Il Fatto Quotidiano on 2015-01-24 17:42:50
    4. Chi più spende (prima) meno spende (dopo): dinamica del debito pubblico nei PECO
      by Alberto Bagnai in Goofynomics on 2015-03-14 18:42:00
    5. QED 53: quando c'è la salute c'è tutto (tre anni dopo).
      by Alberto Bagnai in Goofynomics on 2015-07-28 15:20:00
    6. SISTEMA MONETARIO INTERNAZIONALE E NEO-FEUDALESIMO DELLE ISTITUZIONI FREE-TRADE
      by Quarantotto in Orizzonte48 on 2016-03-09 14:41:00
    7. MONETA E MERCATI: LE VERE OPZIONI ELETTORALI DISPONIBILI (per voi)
      by Quarantotto in Orizzonte48 on 2017-11-05 17:15:00

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    Cited by:

    1. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The a/simmetrie annual macroeconometric model of the Italian economy: structure and properties," a/ Working Papers Series 1405, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    2. Sergio Cesaratto, 2014. "Balance of payments or monetary sovereignty? In search of the EMU’s original sin – a reply to Lavoie," a/ Working Papers Series 1406, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    3. Frenkel, Roberto & Rapetti, Martin, 2014. "The real exchange rate as a target of macroeconomic policy," MPRA Paper 59335, University Library of Munich, Germany.
    4. Burak Saltoðlu & Devrim Yýlmaz, 2013. "Why is it so Difficult and Complex to Solve the Euro Problem?," Working Papers 2013/02, Bogazici University, Department of Economics.
    5. Martín Rapetti, 2013. "The Real Exchange Rate and Economic Growth: Some Observations on the Possible Channels," UMASS Amherst Economics Working Papers 2013-11, University of Massachusetts Amherst, Department of Economics.
    6. Juan E. Santartángelo & Roberto Lampa, 2013. "La crisis financiera internacional: debates teóricos, políticas económicas y enseñanzas," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 36(72), pages 9-34.
    7. Alberto Bagnai, 2014. "Un external compact per rilanciare l'Europa," a/ Working Papers Series 1401, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    8. Giuseppe Mastromatteo & Sergio Rossi, 2015. "The economics of deflation in the euro area: a critique of fiscal austerity," Review of Keynesian Economics, Edward Elgar Publishing, vol. 3(3), pages 336-350, July.

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    More about this item

    Keywords

    Eurozone; Financial crisis; Exchange rate regimes; Post-Keynesian economics.;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G01 - Financial Economics - - General - - - Financial Crises

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