Introduction: The Crisis of Economies and Economics

PSL Quarterly Review, Vol. 64, No. 257, pp. 95-103, 2011

10 Pages Posted: 28 Sep 2011

Date Written: September 28, 2011

Abstract

The article introduces to the current issue of the journal by critically reviewing the articles published therein in light of both recent literature and current economic developments. The main topics dealt with concern the role of mainstream economics and ideology in creating the cultural and economic environment that lead to the crisis in the first place and that hinders now an effective policy response to it. Due to its institutional and governance failures, the European Union and the Eurozone in particular are being more affected by the crisis than any other economic area. There, while the recently rescued big financial institutions have started enjoying large profits from trading and speculation again, the sustainability of sovereign debts is being put under pressure due to lack of confidence in the face of severe austerity packages and the associated bleak growth perspectives. Overall, uncertainty concerning the international political and economic environment seem the main hindrance to economic recovery. However, clear strategies to restore confidence and a seemingly stable and ÒcertainÓ economic context are not apparent at the horizon, with the necessary consequence that the financial crisis is most likely to continue exerting strong negative impacts on the real economy for a sustained period.

Keywords: crisis, uncertainty, mainstream economics, Europe

JEL Classification: G01, B5, E12

Suggested Citation

D'Ippoliti, Carlo, Introduction: The Crisis of Economies and Economics (September 28, 2011). PSL Quarterly Review, Vol. 64, No. 257, pp. 95-103, 2011. Available at SSRN: https://ssrn.com/abstract=1934682

Carlo D'Ippoliti (Contact Author)

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

HOME PAGE: http://dipartimento.dse.uniroma1.it

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