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Fiscal Stimulus, Financial Ruin

In: Institutions in Crisis

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  • Fernando Ulrich

Abstract

This critical and thought-provoking book explores the causes and consequences of Europe’s failed political and economic institutions. Europe’s recession has created new challenges as market turmoil has shaken the foundations of the twin pillars of the new drive for European integration – political and monetary unions. This book critically assesses the patchwork solutions continually offered to hold the troubled unions together. Failed political policies, from the prodigious ‘Common Agricultural Policy’ to ever more common fiscal stimulus packages, are shown to have bred less than stellar results in the past, and to have devastating implications for future European growth. The contributors outline the manner through which European monetary union has subsidized and continues to exacerbate the burgeoning debt crisis. Most strikingly, the interplay between Europe’s political and economic realms is exposed as the boondoggle it is, with increasingly bureaucratic institutions plaguing the continent and endangering future potential.

Suggested Citation

  • Fernando Ulrich, 2011. "Fiscal Stimulus, Financial Ruin," Chapters, in: David Howden (ed.), Institutions in Crisis, chapter 8, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:14370_8
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    References listed on IDEAS

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    1. Fujiwara, Ippei & Ueda, Kozo, 2013. "The fiscal multiplier and spillover in a global liquidity trap," Journal of Economic Dynamics and Control, Elsevier, vol. 37(7), pages 1264-1283.
    2. Mrs. Delia Velculescu, 2010. "Some Uncomfortable Arithmetic Regarding Europe’s Public Finances," IMF Working Papers 2010/177, International Monetary Fund.
    3. Fujiwara, Ippei & Nakajima, Tomoyuki & Sudo, Nao & Teranishi, Yuki, 2013. "Global liquidity trap," Journal of Monetary Economics, Elsevier, vol. 60(8), pages 936-949.
    4. Randall E. Parker, 2002. "Reflections on the Great Depression," Books, Edward Elgar Publishing, number 2473.
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