FROM THE SUBPRIME TO THE SOVEREIGN CRISIS: WHY KEYNESIANISM DOES NOT WORK
<p class="first" id="d343973e63">This article analyzes the recent global economic crisis in the central capitalist economies from the viewpoint of Marxian political economy. In the first section, it examines the so-called sovereign crisis concerning...
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| Format: | Article |
| Language: | English |
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Pluto Journals
2012-03-01
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| Series: | World Review of Political Economy |
| Online Access: | https://www.scienceopen.com/hosted-document?doi=10.2307/41931956 |
| Summary: | <p class="first" id="d343973e63">This article analyzes the recent global economic crisis in the central capitalist
economies from the viewpoint of Marxian political economy. In the first section, it
examines the so-called sovereign crisis concerning the deepening fiscal crisis of
the states, particularly serious now in the Euro zone. Although there is a structural
problem causing the sovereign crisis in peripheral countries in the Euro zone, the
menace of the sovereign crisis is not limited to this region. Both the US and Japanese
governments also suffer from cumulative state debt in all its features. In the second
section, it emphasizes the significance of the continuity of economic disaster from
the subprime to the sovereign crisis as a structured debt crisis in the financialized
capitalism of our age. This encompasses structural debt crises of labor power, financial
institutions, and the states. In the third section, the article shows why renewed
Keynesian and social democratic policies in 2009-10 could not be maintained, after
restoring economic growth in major economies, but were shifted back to neo-liberal
austerity policies.
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| ISSN: | 2042-891X 2042-8928 |