SOVEREIGN DEBT CRISIS: REGRESSIVE SOCIAL ADJUSTMENT AND NEW A SYMMETRIC ECONOMY GOVERNANCE

Financial turmoil that turned into economic crisis, led to a transitory return to Keynesian paradigms, both in monetary and fiscal policy terms. Notwithstanding, wrongly-called “sovereign debt crisis”, fed by i) public bailout of financial institutions, ii) economic stimulus actions and iii) adverse effect from automatic stabilizers in a downturn context, has favored the enforcement by “the market” of both politics and economics discipline rules. Sovereign crisis has paved the way to undertake regressive social adjustments and impose new discipline standards in labor & wage terms, coming back to neoliberalism basics of 1970s.  Public intervention is growingly been contested across Europe, and the Eurozone, seeking to establish a new asymmetric economy governance, shifting to a model that threatens its medium term growth prospects and ultimately will prove ineffective to solve fiscal deficit and public debt concerns.

Revista: 
29
Autores: 
Francisco Rodríguez Ortiz
Archvo adjunto: 

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