Cozzi, Giovanni, McKinley, Terry and Michell, Jo (2014) Can conventional macroeconomic policies prevent persistent stagnation in the European Union? [Working Paper]

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Abstract

This Policy Brief is the first of a series of three that explore progressive policies that could address the current economic dilemma of the European Union. This first one assumes a continuation of conventional macroeconomic policies together with a significant rise in capital investment. We give particular attention to Jean Claude Juncker’s announcement of an ambitious investment package, advertised to be financed by €300 billion over three years. Our macroeconomic modelling clearly shows that the scale of this plan when accompanied by continued reductions in government spending and revenue would not be sufficient to stave off secular stagnation throughout Europe.

Item Type:	Working Paper
Additional Information:	© 2014 Fondation européenne d'études progressistes - FEPS. Tous droits reservés. | Vie privée | Création de site internet par Synchrone Avec le soutien financier du Parlement européen
Uncontrolled Keywords:	Fiscal policy, Monetary policy, Eurozone, Investment, Austerity
Faculty / School / Research Centre / Research Group:	Faculty of Business > Department of International Business & Economics Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Related URLs:	Publisher
Last Modified:	04 Aug 2021 16:33
URI:	http://gala.gre.ac.uk/id/eprint/14308

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