Abstract
The global financial crisis of 2007–2009 and the subsequent ‘Great Recession’ have often been compared with the 1929–1933 financial crisis starting with the Wall Street crash and the ‘Great Depression’. The scale of the ‘Great Recession’ has for most countries not been as great as that of the ‘Great Depression’ due to the larger scale of government and the willingness to allow the ‘automatic stabilizers’ of fiscal policy to work with resulting large budget deficits. But recently the general tenor of debate has swung in the direction of austerity.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arestis, P. (ed.) (2007) Is There a New Consensus in Macroeconomics?, Basingstoke: Palgrave.
Arestis, P. and M. Sawyer (2008) ‘A critical reconsideration of the foundations of monetary policy in the new consensus macroeconomics framework’, Cambridge Journal of Economics, 32(5): 761–779.
Cameron, D. (2013) ‘Speech to the World Economic Forum in Davos’ (http://www.number10.gov.uk/news/prime-minister-david-camerons-speech-to-the-world-economic-forum-in-davos/) accessed 24 January 2013.
European Union (2012) Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, Brussels: European Union.
Hein, E. (2012) The Macroeconomics of Finance-dominated Capitalism—and Its Crisis, Cheltenham, UK: Edward Elgar.
Kalecki, M. (1943) ‘Political aspects of full employment’, Political Quarterly, 14(4): 322–331.
Kalecki, M. (1944a) ‘Three ways to full employment’, in Oxford University Institute of Statistics, The Economics of Full Employment, Oxford: Blackwell.
Kalecki, M. (1944b) ‘The White Paper on Employment Policy’, Bulletin of the Oxford University Institute of Statistics, reprinted in Kalecki (1997).
Kalecki, M. (1945) ‘The maintenance of full employment after the transition period: a comparison of the problem in the USA and the UK’, International Labour Review, 52(5): 449–464, reprinted in Kalecki (1990).
Kalecki, M. (1990), Collected Works of Michał Kalecki Vol. 1, ed. J. Osiatyński, Oxford: Clarendon Press.
Kalecki, M. (1991), Collected Works of Michał Kalecki Vol. 2 ed. J. Osiatyński, Oxford: Clarendon Press.
Kalecki, M. (1997) ‘Studies in applied economics 1940–1967; Miscellanea’, Collected Works of Michał Kalecki Vol. 7, ed. J. Osiatyński, Oxford: Clarendon Press.
Meyer, L.H. (2001) ‘Does money matter?’, Federal Reserve Bank of St. Louis Review, 83(5), 1–15.
Ministry of Reconstruction (1944), Employment Policy, Cmnd. 6527, London: HMSO.
Organization for Economic Co-operation and Development (OECD), Paris. (2009) Economic Outlook, — See n. 3.
Sawyer, M. (1996) ‘Kalecki on the trade cycle and economic growth’ in J. King (ed.) An Alternative Macroeconomic Theory: The Kaleckian Model and Post Keynesian Economics, New York: Kluwer, pp. 93–114.
Sawyer, M. (2012a) ‘The tragedy of UK fiscal policy’, Cambridge Journal of Economics, 36(1): 205–221.
Sawyer, M (2012b) ‘Fiscal austerity: the ‘cure’ which makes the patient worse’, Centre for Labour and Social Studies (available at http://classonline.org.uk).
Sawyer, M. (2013) ‘The problematic nature of the Economic and Monetary Union’, in S. Fadda and P. Tridico (eds), Financial Crisis, Labour Market and Institutions, London: Routledge.
Woodford, M. (2003) Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton: Princeton University Press.
Editor information
Editors and Affiliations
Copyright information
© 2015 Malcolm Sawyer
About this chapter
Cite this chapter
Sawyer, M. (2015). Addressing the ‘Great Recession’ Using Kalecki’s Macroeconomic Analysis. In: Toporowski, J., Mamica, Ł. (eds) Michał Kalecki in the 21st Century. Palgrave Studies in the History of Economic Thought Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137428288_13
Download citation
DOI: https://doi.org/10.1057/9781137428288_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-49137-7
Online ISBN: 978-1-137-42828-8
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)