Macroeconomics, Financial Crisis and the Environment: Strategies for a Sustainability Transition
We raise fundamental questions about macroeconomics relevant to escaping the financial-economic crisis and shifting to a sustainable economy. First, the feasibility of decoupling environmental pressure from aggregate income is considered. Decoupling as a single environmental strategy is found to be very risky. Next, three main arguments for economic growth are examined: growth as progress, growth to avoid economic instability, and growth to offset unemployment due to labor productivity improvements. For each, we offer orthodox, heterodox and new responses. Attention is paid to progress indicators, feedback mechanisms affecting business cycles, and strategies to limit unemployment without the need for growth. Besides offering an economy-wide angle, we discuss the role of housing and mortgage markets in economic cyclicality. Finally, interactions between real economic and financial-monetary spheres are studied. This includes money creation, capital allocation and trade-offs between efficiency and operating costs of financial systems. Throughout, environmental and transition implications are outlined.
|Date of creation:||Feb 2014|
|Date of revision:|
|Contact details of provider:|| |
|Order Information:|| Postal: WWWforEurope Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hunt, Jennifer, 1997.
"Has Work Sharing Worked in Germany?,"
CEPR Discussion Papers
1553, C.E.P.R. Discussion Papers.
- Douthwaite, Richard, 2012. "Degrowth and the supply of money in an energy-scarce world," Ecological Economics, Elsevier, vol. 84(C), pages 187-193.
- Joshua Coval & Jakub Jurek & Erik Stafford, 2009. "The Economics of Structured Finance," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 3-25, Winter.
- Jeroen C.J.M. van den Bergh & John M. Gowdy, 2000.
"The Microfoundations of Macroeconomics: An Evolutionary Perspective,"
Tinbergen Institute Discussion Papers
00-021/3, Tinbergen Institute.
- Jeroen C. J. M. van den Bergh & John M. Gowdy, 2003. "The microfoundations of macroeconomics: an evolutionary perspective," Cambridge Journal of Economics, Oxford University Press, vol. 27(1), pages 65-84, January.
- Reinhart, Carmen M. & Rogoff, Kenneth, 2010.
"Growth in a Time of Debt,"
CEPR Discussion Papers
7661, C.E.P.R. Discussion Papers.
- William D. Nordhaus, 2006.
"Baumol's Diseases: A Macroeconomic Perspective,"
NBER Working Papers
12218, National Bureau of Economic Research, Inc.
- Jeffrey P. Cohen & Cletus C. Coughlin, 2005. "An introduction to two-rate taxation of land and buildings," Review, Federal Reserve Bank of St. Louis, issue May, pages 359-374.
- Eichengreen, Barry & Tobin, James & Wyplosz, Charles, 1994.
"Two Cases for Sand in the Wheels of International Finance,"
Center for International and Development Economics Research (CIDER) Working Papers
233396, University of California-Berkeley, Department of Economics.
- Eichengreen, Barry & Tobin, James & Wyplosz, Charles, 1995. "Two Cases for Sand in the Wheels of International Finance," Economic Journal, Royal Economic Society, vol. 105(428), pages 162-72, January.
- Barry Eichengreen, James Tobin, and Charles Wyplosz., 1994. "Two Cases for Sand in the Wheels of International Finance," Center for International and Development Economics Research (CIDER) Working Papers C94-045, University of California at Berkeley.
- David I. Stern, 2003.
"The Rise and Fall of the Environmental Kuznets Curve,"
Rensselaer Working Papers in Economics
0302, Rensselaer Polytechnic Institute, Department of Economics.
- Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
- P. Bernd Spahn, 1995. "International Financial Flows and Transactions Taxes; Survey and Options," IMF Working Papers 95/60, International Monetary Fund.
- Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
- Christopher A. Pissarides & Giovanna Vallanti, 2007.
"The Impact Of Tfp Growth On Steady-State Unemployment,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(2), pages 607-640, 05.
- Pissarides, Christopher & Vallanti, Giovanna, 2005. "The Impact of TFP Growth on Steady-State Unemployment," CEPR Discussion Papers 5002, C.E.P.R. Discussion Papers.
- Davidson, Paul, 1997. "Are Grains of Sand in the Wheels of International Finance Sufficient to Do the Job When Boulders Are Often Required?," Economic Journal, Royal Economic Society, vol. 107(442), pages 671-86, May.
- Karl Aiginger, 2011. "Why Growth Performance Differed across Countries in the Recent Crisis: the Impact of Pre-crisis Conditions," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 35-52, August.
- Kallis, Giorgos, 2011. "In defence of degrowth," Ecological Economics, Elsevier, vol. 70(5), pages 873-880, March.
- Dresner, Simon & Dunne, Louise & Clinch, Peter & Beuermann, Christiane, 2006. "Social and political responses to ecological tax reform in Europe: an introduction to the special issue," Energy Policy, Elsevier, vol. 34(8), pages 895-904, May.
- Lawrence J. White, 2010. "Markets: The Credit Rating Agencies," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 211-26, Spring.
- Ekins, Paul & Pollitt, Hector & Summerton, Philip & Chewpreecha, Unnada, 2012. "Increasing carbon and material productivity through environmental tax reform," Energy Policy, Elsevier, vol. 42(C), pages 365-376.
- Kunce, Mitch & Shogren, Jason F., 2008. "Efficient decentralized fiscal and environmental policy: A dual purpose Henry George tax," Ecological Economics, Elsevier, vol. 65(3), pages 569-573, April.
- Jonathan Harris, . "08-02 "Ecological Macroeconomics: Consumption, Investment, and Climate Change"," GDAE Working Papers 08-02, GDAE, Tufts University.
- Weintraub, E Roy, 1977. "The Microfoundations of Macroeconomics: A Critical Survey," Journal of Economic Literature, American Economic Association, vol. 15(1), pages 1-23, March.
- Oates, Wallace E. & Schwab, Robert M., 1997. "The Impact of Urban Land Taxation: The Pittsburgh Experience," National Tax Journal, National Tax Association, vol. 50(1), pages 1-21, March.
- Ben Beachy, 2012. "A Financial Crisis Manual Causes, Consequences, and Lessons of the Financial Crisis," GDAE Working Papers 12-06, GDAE, Tufts University.
- David Aikman & Andrew G. Haldane & Benjamin D. Nelson, 2015. "Curbing the Credit Cycle," Economic Journal, Royal Economic Society, vol. 125(585), pages 1072-1109, 06.
- van den Bergh, Jeroen C.J.M., 2011. "Environment versus growth -- A criticism of "degrowth" and a plea for "a-growth"," Ecological Economics, Elsevier, vol. 70(5), pages 881-890, March.
- Gill Seyfang, 2006. "Sustainable consumption, the new economics and community currencies: Developing new institutions for environmental governance," Regional Studies, Taylor & Francis Journals, vol. 40(7), pages 781-791.
When requesting a correction, please mention this item's handle: RePEc:feu:wfeppr:y:2014:m:2:d:0:i:10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.