This seminar will offer an account of the Euro crisis based on post-Keynesian economics and French Regulation Theory. Neoliberalism has restructured the mode of regulation but it has not given rise to a sustained profit-led growth process. In the finance-dominated accumulation regime growth relies either on financial bubbles and rising household debt (‘debt-driven growth’) or on net exports (‘export-driven growth’). In Europe the financial crisis has been amplified by an economic policy architecture (the Stability and Growth Pact) that aimed at restricting the role of fiscal policy and separating monetary policy and central banks from national governments. This economic policy regime is neoliberal in that it trusts in the efficiency of competitive markets and has created a system where government activity is rule-bound and exposed to market pressures. As a result the financial crisis of 2007 turned into a sovereign debt crisis.
Engelbert Stockhammer is Professor of Economics at Kingston University:http://fass.kingston.ac.uk/faculty/staff/cv.php?staffnum=713
5th March, 4:30-5:30pm, Sidgwick Site, Lecture Block, Room 2