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L’expiation par l’austérité ou la stratégie de l’échec : une interprétation post-keynésienne de la crise des pays périphériques en zone euro
[Expiation through austerity or the strategy of failure: a Post-Keynesian explanation of sovereign debt crisis in the euro zone]

Author

Listed:
  • Charles, Sebastien
  • Dallery, Thomas

Abstract

This article deals with the sustainability of public debt within the Post-Keynesian framework proposed by Pasinetti in order to determine the stability conditions of the public debt/GDP ratio. This alternative and simple technique is used to assess the impact of austerity policies in some peripheral countries of the Eurozone, insisting on the bad diagnosis addressed about the causes of fiscal deficits. We show that these countries are compelled to ‘expiate’ sins they have not committed accepting austerity measures with noticeably dubious impacts.

Suggested Citation

  • Charles, Sebastien & Dallery, Thomas, 2013. "L’expiation par l’austérité ou la stratégie de l’échec : une interprétation post-keynésienne de la crise des pays périphériques en zone euro [Expiation through austerity or the strategy of failure:," MPRA Paper 65735, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:65735
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    File URL: https://mpra.ub.uni-muenchen.de/65735/1/MPRA_paper_65735.pdf
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    References listed on IDEAS

    as
    1. Pasinetti, Luigi L, 1998. "The Myth (or Folly) of the 3 Percent Deficit/GDP Maastricht 'Parameter.'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(1), pages 103-116, January.
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    More about this item

    Keywords

    Public debt; Political economy of the Eurozone; Sustainability;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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