From financial crisis to stagnation : the destruction of shared prosperity and the role of economics / Thomas I. Palley.

Format:

Book

Author/Creator:

Palley, Thomas I., 1956-

Language:

English

Subjects (All):

United States--Economic conditions--2009-.

United States.

Economic conditions.

United States--Economic policy.

Economic policy.

Recessions--United States.

Recessions.

Financial crises--United States.

Financial crises.

Global Financial Crisis, 2008-2009.

Physical Description:

xvii, 238 pages : illustrations ; 24 cm

Place of Publication:

New York : Cambridge University Press, 2012.

Summary:

"The U.S. economy today is confronted with the prospect of extended stagnation. This book explores why. Thomas I. Palley argues that the Great Recession and destruction of shared prosperity is due to flawed economic policy over the past thirty years. One flaw was the growth model adopted after 1980 that relied on debt and asset price inflation to fuel growth instead of wages. A second flaw was the model of globalization that created an economic gash. Third, financial deregulation and the house price bubble kept the economy going by making ever more credit available. As the economy cannibalized itself by undercutting income distribution and accumulating debt, it needed larger speculative bubbles to grow. That process ended when the housing bubble burst. The earlier post-World War II economic model based on rising middle-class incomes has been dismantled, while the new neoliberal model has imploded. Absent a change of policy paradigm, the logical next step is stagnation. The political challenge we face now is how to achieve paradigm change"--Provided by publisher.

Contents:

Part I Origins of the Great Recession

1 Goodbye Financial Crash, Hello Stagnation 3

2 The Tragedy of Bad Ideas 9

3 Overview: Three Perspectives on the Crisis 21

4 America's Exhausted Paradigm: Macroeconomic Causes of the Crisis 32

5 The Role of Finance 57

6 Myths and Fallacies about the Crisis: Stories about the Domestic Economy 79

7 Myths and Fallacies about the Crisis: Stories about the International Economy 97

Part II Avoiding the Great Stagnation

8 The Coming Great Stagnation 125

9 Avoiding the Great Stagnation: Rethinking the Paradigm 141

10 The Challenge of Corporate Globalization 162

11 Economists and the Crisis: The Tragedy of Bad Ideas Revisited 186

12 Markets and the Common Good: Time for a Great Rebalancing 209.

Notes:

Includes bibliographical references and index.

ISBN:

9781107016620

1107016622

OCLC:

740886630