Economic Policy, Crisis and Innovation: Beyond Austerity in Europe

Description

This book is a Festschrift to Annamaria Simonazzi and embraces the themes that she has contributed to over the years through her insightful and inspiring works. It brings together contributions from a number of distinguished European economists, which pay tribute to her by engaging in a dialogue with her research, simultaneously reflecting on the process of growing economic disintegration in the European Union, its causes and its possible remedies. The book shows the deep interrelations between macroeconomic issues and the social sphere, and points to the need to rethink the very foundations of European economic policies as an effective antidote to growing imbalances and disintegration. In particular, the effects of austerity are assessed alongside the dimensions of inequality, gender discrimination, poverty, and unemployment, broadening the perspective also beyond the Eurozone. The authors envision a progressive society, in which investments in research and intelligent industrial policies govern the processes of technological change and drive the economy towards a more efficient and more equal model of development characterized by high productivity and high wages. While some chapters deal directly with policy issues, policy suggestions and proposals are scattered throughout the whole book. This volume will appeal to academics, economists, and policy-makers interested in understanding the policy response of European institutions to the challenges posed by both the Great Recession and subsequent developments in the European economies. The book is written in an engaging and accessible way, and the themes are broad enough to generate interest from the international public. Cover Half Title Series Page Title Page Copyright Page Table of Contents List of figures List of tables List of contributors Introduction Acknowledgement Reference PART I: Europe in crisis: the cases of Italy, Spain and Germany 1. The economic consequences of the Maastricht Treaty: why Italy’s permanent crisis is a warning to the Eurozone Italy’s permanent crisis – which started in 1992 Perpetual fiscal austerity Permanent real wage restraint The suffocation of Italian aggregate demand after 1992 Cumulative causation at work: Italy’s structural demand deficiency feeds into a productivity crisis and a squeezing of the profit rate Italy’s permanent crisis is a warning for the Eurozone Acknowledgements Notes References 2. Recovery or stagnation? Spain and Italy after the Great Recession Introduction Italy and Spain: similar problems, different paths Crisis and post-crisis Conclusion: no change ahead Notes References 3. The German “reforms” – no model for the EU Introduction The innovation of the production model Internal devaluation A misattributed success story Conclusion and outlook References PART II: Integration and disintegration in the European Monetary Union 4. Did monetary union make political union less likely? Introduction Monetary union Events in Eastern Europe: 1989 The crisis of the GDR and the negotiations on monetary union Political union: the first steps Conclusion Note References 5. External imbalances and European integration Introduction The European growth and convergence model prior to the crisis External imbalances of different groups of Europe’s low- and mediumincome countries The impact of the crisis: external accounts adjustment External and sectoral imbalances and the “manufacturing imperative” for Europe’s EMEs Implications of divergence: political economy considerations Summary and policy conclusions Acknowledgements Notes References 6. The Italian economy from WWII to the EMU: structural weaknesses and external constraint Introduction The Italian “golden-age” Failure to adapt and mistakes in policy design in a changing global context The bumpy road towards the EMU: becoming the periphery Conclusion Notes References PART III: The social effects of neoliberal macroeconomics 7. Market income inequality and welfare state redistribution in Europe: some facts and policy suggestions Introduction Market income and disposable income inequality in 2008 and 2016 What we need: inequality-reducing policies Inequality in the EU as a whole and a comparison with the US Conclusion Notes References 8. Labour market reforms in Europe and young people’s labour market integration in turbulent times Introduction Background literature Method Results Conclusion Acknowledgements Notes References 9. Prolonged austerity and gender equality: the cases of Greece and the UK compared Introduction The political and economic factors leading to prolonged austerity Comparison of labour market trends by gender in Greece and the UK, 2008–2017 Labour market reform and gender equality Gender equality policies Care policies Conclusion Notes References 10. Disseminating expertise on gender and economics: the experience of inGenere.it Introduction The experience of inGenere.it Gender mainstreaming in times of crisis at inGenere.it Towards a “pink new deal” Notes References PART IV: Technological challenge and policy 11. Is automation beneficial for society as a whole? What we can learn re-reading Ricardo and Marx on machinery and labour Introduction Ricardo on machinery and on his change of mind Marx: the complexity of the relationship between machinery and labour Conclusion Acknowledgements Notes References 12. Working conditions and quality of work in the digitized factory Introduction Labour costs, bargaining and new machines A stylized model of a 4.0 production plant Taylorism and Industry 4.0: standardization and low qualification of work can easily co-exist with digitalization Maintenance, control, and instruction of machines Training and skill development Work intensity and health Conclusion References 13. Digital transformation in the automotive supply chain: a comparative perspective Introduction What is meant by “digital transformation”? Digital transformation in progress State-of-play of digital transformation in the automotive supply chain: China, Germany, Italy and Japan Multi-dimensional perspective on digital transformation: two examples Policy implications Acknowledgments Notes References 14. Productive structures and industrial policy in the EU Introduction Productive structure: a conceptual framework Productive structures in EU centre: focus on Germany Structural Funds and EU industrial policy Productive structures in the EU periphery: focus on Ireland Product systems and intractable sectors Conclusion: government as strategic organizer Acknowledgements Notes Annex References 15. Vision vs improvisation: on the industrial future of Italy Finally, we can talk about it The need for governing policies affecting the productive context Direct policies Connecting industrial policy to territorial rebalancing Further reading Index