Uscire Dalla Crisi Finanziaria Statunitense: La Politica Domina L’Economia Nella Nuova Economia Politica (Exit from U.S. Financial Crisis: The Politics Dominate the Economy in the New Political Economy)

Moneta e Credito, Vol. 64, No. 253, pp. 15-30, 2011

16 Pages Posted: 19 May 2011

See all articles by Jan A. Kregel

Jan A. Kregel

Bard College - The Levy Economics Institute

Date Written: May 3, 2011

Abstract

Most economists expected that the “Great Recession” produced by the financial meltdown of 2008 would usher in a resurgence of traditional Keynesian economics and a decline of what has come to be called “market fundamentalism”. By contrast, also due to the inadequate size of the 2009 stimulus package, the resurgence of support for Keynesian expenditure policies has been extremely short lived. However, the negative popular and political reaction should not have come as a surprise, at least for three reasons: the design of the Obama stimulus plan and its difference from the expenditure policies of the Roosevelt Administration; the political environment that has eviscerated fiscal policy and placed monetary policy at the centre of economic policy and produced “debt driven” growth; the difference between policies appropriate to treating an income deflation and a debt deflation.

Note: Downloadable document is in Italian.

Keywords: political economy, financial crisis, Keynesian policies, USA

JEL Classification: G01, B50, N12, H12

Suggested Citation

Kregel, Jan A., Uscire Dalla Crisi Finanziaria Statunitense: La Politica Domina L’Economia Nella Nuova Economia Politica (Exit from U.S. Financial Crisis: The Politics Dominate the Economy in the New Political Economy) (May 3, 2011). Moneta e Credito, Vol. 64, No. 253, pp. 15-30, 2011, Available at SSRN: https://ssrn.com/abstract=1837352

Jan A. Kregel (Contact Author)

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States
845-758-7700 (Phone)
845-758-1149 (Fax)

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