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IThe US Economy: From Crisis to Stagnation

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  • Thomas I. Palley

Abstract

This paper examines the major competing interpretations of the economic crisis in the US and explains the rebound of neoliberal orthodoxy. It shows how US policymakers acted to stabilize and save the economy, but failed to change the underlying neoliberal economic policy model. That failure explains the emergence of stagnation, which is likely to endure. Current economic conditions in the US smack of the mid-1990s. The 1990s expansion proved unsustainable and so will the current modest expansion. However, this time it is unlikely to be followed by financial crisis because of the balance sheet cleaning that took place during the last crisis.

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  • Thomas I. Palley, 2015. "IThe US Economy: From Crisis to Stagnation," IMK Working Paper 154-2015, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    • Handle: RePEc:imk:wpaper:154-2015
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    References listed on IDEAS

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    1. Pavlina Tcherneva, 2014. "Reorienting fiscal policy: a bottom-up Approach," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 37(1), pages 43-66.
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    Cited by:

    1. Simon Schairer, 2024. "The contradictions of unconventional monetary policy as a post-2008 thwarting mechanism: financial dominance, shadow banking, and inequality," Review of Evolutionary Political Economy, Springer, vol. 5(1), pages 1-29, June.

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