This book explores the foundations of the current economic crisis. Offering a heterodox approach to interpretation it examines the policies implemented before and during the crisis, and the main institutions that shaped the model of advanced economies, particularly in the last two decades.

The first part of the book provides a theoretical analysis of the crisis. The roots of the ‘great recession’ are divided into fundamentals with origins in financial liberalisation, financial innovation and income distribution, and complementary or contributory factors such as the international imbalances, the monetary policy,and the role of credit rating agencies. Part II suggests various paths to recovery while emphasising that it will be necessary to develop alternative strategies for sustainable economic recovery and growth. These strategies will require genuine political support and a new 'great European vision' to address major issues concerning the EU such as unemployment, structural regional differences and federalism.

Drawing on various schools of thought, this book explains the complexities of the crisis through a wider evolutionary-institutional and heterodox framework.

chapter |6 pages


BySebastiano Fadda, Pasquale Tridico

part Part I|110 pages

Crisis interpretation

chapter 1|17 pages

Economic crisis and the explanatory power of (institutional) economics

ByJohn Groenewegen

chapter 2|16 pages

Causes of the ‘great recession' and economic policy implications

ByPhilip Arestis, Elias Karakitsos

chapter 3|13 pages

Financialization, financial systems and sustainable development

ByMalcolm Sawyer

chapter 4|23 pages

Financial capitalism trapped in an ‘impossible' profit rate

The infeasibility of a ‘usual' profit rate, considering fictitious capital, and its redistributive, ecological and political implications1
ByWolfram Elsner

chapter 5|13 pages

The battle of ideas in the Eurozone crisis management

German ordoliberalism versus post-Keynesianism
ByBrigitte Young

chapter 6|26 pages

From economic decline to the current crisis

A comparison between Italy, France and Germany1
ByPasquale Tridico

part Part 2|103 pages

Exit perspectives and development strategies

chapter 7|15 pages

Should we cut the welfare state in order to get out of the crisis?

Some methodological considerations
BySebastiano Fadda

chapter 8|17 pages

The future of the euro

ByVincent Duwicquet, Jacques Mazier, Pascal Petit, Jamel Saadaoui

chapter 10|22 pages

United in diversity

Consequences for common labour market policy in the times of crisis
ByJacek Wallusch, Beata Woźniak-Jęchorek

chapter 11|20 pages

A cultural political economy of crisis recovery

(Trans-)national imaginaries, growth dynamics in the ‘BRIC' and the Chinese case
ByNgai-Ling Sum