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Economic Strategies to Manage the Crisis: Austerity or Government Investment Programmes?

What is an economic crisis and how can we identify one? How can governments react to it? Is there only one valid solution? Are different solutions inocuous related to the effects over the population? Who pays the price of the differents possible solutions?
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  1. Introduction
  2. The theory: two opposed models
    1. The neoclassical model
    2. The Keynesian model
    3. Instruments to respond to economic imbalances: fiscal and monetary policies
    4. How do the two models suggest responding to economic imbalances with the respective policy instruments?
    5. Consequences of each economic policy choice
  3. Crisis: The World Economic Disorder and the opposite responses
    1. The Big Depression and the Keynesian model 
    2. The oil crisis and the end of the Welfare State
    3. The neoliberal model and the 2008 financial crisis
    4. The conservative response: austerity
    5. Counter-cyclical response: what government incentives could look like in crisis recovery
  4. The role of Political Economy: further advice
  5. References

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Course Includes

  • 7 Lessons
  • 17 Topics
  • 1 Quiz

Source and Responsibility

This platform is co-funded by the European Union’s Erasmus+ programme for Adult Education.

The European Commission’s support for the production of this learning platform does not constitute an endorsement of the contents, which reflect the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

 

Amazing to study such a diversity of topics and various perspectives on economics!
Mary McLain
Mary McLainStudent, Ireland
An ambitious project. Sometimes long texts, but well structured and highly enriching. Feel the sense of such a platform.
Mirko Singer
Mirko SingerTrainer, Germany
International, European insights from the authors of seven countries make this platform unique!
Mariana Bonzaro
Mariana BonzaroAdult Educator, Spain
Great to bring daily live perspectives together with the bigger horizon of society and economy as a whole. Helps really to better understand what occurs around me.
John Miller
John MillerStudent, Poland

Se permite la redistribución de este trabajo y su contenido como Recurso Educativo Abierto (REA). Por favor, cite como sigue: "Fresh Up Economics. Towards Economic Literacy in Europe" por el equipo del proyecto Fresh Up, CC BY-SA 4.0 resh Up Economics. Towards Economic Literacy in Europe" by Fresh Up project team, CC BY-SA 4.0

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