Global crises: Is the Keynesian recipe relevant if applied under a global governance?

Szentes, Tamás (2013) Global crises: Is the Keynesian recipe relevant if applied under a global governance? Society and Economy, 35 (3). pp. 273-297. DOI 10.1556/SocEc.35.2013.3.1

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Keynesian policy was quite successful in the post-war decades in Western Europe, but by the late 1960s lost its efficiency due to changes in conditions rather than its mistaken logic. The lesson from the first global crisis erupting in early 1970s and also from the subsequent several crises since then is that the increasing crisis propensity of the world economy is rooted in its inherent disequilibria stemming from deep inequalities, asymmetrical interdependencies and disintegrated socio-economic structures. In view of the failure of the prevailing methods of crisis management, particularly those undifferentiated, antisocial austerity measures corresponding to a neo-liberal monetarist concept which neglects this lesson, many economists prefer the Keynesian recipe. However, since global crises need global solution, and the spread of conspicuous consumption modify the demand constraint, its application must be adjusted to reality, and requires some global governance which may pave the way for a global oeco-social market economy.

Item Type:Article
Uncontrolled Keywords:globalisation, asymmetrical interdependencies, conspicuous consumerism, austerity measures, welfare state, oeco-social market economy, global governance, countervailing power, JEL code: F02, F42
Divisions:Faculty of Economics > Department of World Economy
International economics
ID Code:1342
Deposited By: Ádám Hoffmann
Deposited On:16 Sep 2013 13:31
Last Modified:13 Dec 2021 09:26

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