Wirtschaftspolitik Zwischen Spekulation Und Rezession (Economic Policy between Speculation and Recession)

46 Pages Posted: 11 Jul 2011

See all articles by Heinz Handler

Heinz Handler

Austrian Institute of Economic Research (WIFO); Vienna University of Technology - Institute of Statistics and Mathematical Methods in Economics, Research Group Economics (ECON); Austrian Federal Chancellery - Verwaltungsakademie des Bundes

Date Written: July 5, 2010

Abstract

The Great Recession has triggered an ongoing discussion on its causes and on the conditions to avoid future crises. Although the international community has considered a number of improvements in the area of policy coordination and regulation of financial markets, the implementation of such measures has been slow and watered down by intervention from various interest groups. As the unfolding debt problems in Europe reveal, the crisis is by far not resolved. The Eurozone has proven to be just a fair weather system which is lacking a long-term stability mechanism and is thus not fit to withstand a major crisis. The paper argues that a reformed system will need on the European level a stringent fiscal coordination mechanism as well as an effective adjustment mechanism to avoid gross divergences in the development of national and regional competitiveness. Otherwise the Eurozone would end up as a transfer union, a vision which is currently repudiated by most political circles.

Note: Downloadable document is in German.

Keywords: Financial crisis, Great Recession, Great Depression

JEL Classification: E44, E58, E65

Suggested Citation

Handler, Heinz J., Wirtschaftspolitik Zwischen Spekulation Und Rezession (Economic Policy between Speculation and Recession) (July 5, 2010). Available at SSRN: https://ssrn.com/abstract=1878967 or http://dx.doi.org/10.2139/ssrn.1878967

Heinz J. Handler (Contact Author)

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Arsenal 20
Vienna, A-1103
Austria
+43 1 79826010 (Phone)

HOME PAGE: http://www.wifo.ac.at

Vienna University of Technology - Institute of Statistics and Mathematical Methods in Economics, Research Group Economics (ECON) ( email )

Wiedner Hauptstra├če 8/105-3
Vienna, 1040
Austria

HOME PAGE: http://www.econ.tuwien.ac.at

Austrian Federal Chancellery - Verwaltungsakademie des Bundes ( email )

Mauerbachstrasse 43-45
Vienna, A-1140
Austria

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