Neoliberalism aims to diminish the role of the state and enhance the power of the market, and this goal is reflected in neoliberal monetary theory which guided the euro’s design.
It is not just that wages and salaries have grown vastly more unequal. Policy decisions have greatly reduced the equalizing effect of taxes and transfers.
Dean Baker and Mark Weisbrot, Co-Directors of Center for Economic and Policy Research - CEPR, welcome Fed’s intervention in European markets, but say it is not enough.
The Green Paper neglects that low interest rates are not a sufficient condition for growth; this paper proposes a “Twin Track” Strategy for combining stability through Union Bonds with growth through Eurobonds.
This paper examines three different explanations of the global financial imbalances. It begins with the neoliberal globalization hypothesis that explains the imbalances as the product of the model of globalization implemented over the past thirty years. It then examines the saving glut and reserve currency hypotheses. The paper concludes by arguing that both the saving glut and reserve currency hypotheses are inconsistent with the empirical record and both provide a misleading guide for policy.
