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The collapse of neoliberal capitalism: Causes and cures: A review article

Review products

Taylor Lance , Maynard’s Revenge: The Collapse of Free Market Macroeconomics. Cambridge, MA, and London: Harvard University Press, 2010; 285 pp.: 9780674050464, 9780674050460
Palley Thomas , From the Crisis to Stagnation: The Destruction of Shared Prosperity and the Role of Economics. Cambridge: Cambridge University Press, 2012; 238 pp.: 9781107612464, 9781107016620

Published online by Cambridge University Press:  01 January 2023

Peter Kriesler  and
JW Nevile
Peter Kriesler
Affiliation:
The University of New South Wales, Australia
JW Nevile
Affiliation:
The University of New South Wales, Australia
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Abstract

These books, different in style and content but united in purpose and major conclusions, analyse events from 2007 to 2010 to ascertain why the economic disaster happened and what must be done to put the United States economy (on which both books focus) on a more secure footing, and prevent any recurrence of the extended crisis of those years. Both target the increasing influence of market liberalism over the last 30 years, and the institutions of capitalist economies which they have encouraged. Taylor focuses more on the regulation of the international financial sector, and Palley on labour market policy. They agree that both need to be addressed if the United States economy is to be restored to health. Both argue that growing income inequality in the US must be reversed before the US economy can significantly improve. Finally, they stress the interrelationship between political ideology and economic explanation, and argue that value free positive economics is a myth.

Keywords

E24E32E60Global financial crisisincome inequalityKeynesian economicsmacroeconomic policyneoliberalism
Type
Review Article
Information
The Economic and Labour Relations Review , Volume 25 , Issue 3: Special issue - Crisis, Austerity, Neoliberalism and alternatives , September 2014 , pp. 518 - 531
Copyright
© The Author(s) 2014

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