The Macroeconomics of de-growth - Can a de-growth strategy be stable?

Table of Contents

1. Introduction

2. From growth critics to de-growth

2.1. Historical overview of the economic growth theories and environmental limits

2.2. Formation of the de-growth concept from the environmental perspective

3. Economics of the concepts for sustainability

3.1. Neoclassical environmental approach to sustainability

3.2. Ecological approach to sustainability

3.2.1. The Steady-State economy

3.2.2. The LowGrow model

3.3. Post-Keynesian approach to sustainability

4. De-growth modelling in the Post-Keynesian economic framework

4.1. Kaleckian model and its extensions

4.1.1. Dutt–Amadeo model and Bhaduri-Marglin extension

4.1.2. The impact of financialisation

4.2. The de-growth assumptions in the Kaleckian model

4.2.1. Zero growth assumption in the Dutt–Amadeo, Bhaduri-Marglin, and market financialisation framework

4.2.2. Governmental intervention in the economy

4.2.3. Evaluation of the functioning model with the given notion of de-growth

5. Policy recommendations

6. Conclusion

Objectives and Research Themes

This master thesis investigates the feasibility of a de-growth strategy as an alternative economic path to achieve sustainability. The core research question addresses whether a zero-growth economic strategy can maintain macroeconomic stability, using a post-Keynesian framework and Kaleckian models to evaluate potential economic conditions and necessary government interventions.

• Theoretical evaluation of de-growth as a sustainable development strategy.
• Comparative analysis of neoclassical, ecological, and post-Keynesian economic approaches.
• Modelling macroeconomic stability under zero-growth conditions using Kaleckian extensions.
• Assessment of government policy instruments, such as taxation and redistribution, to support a non-growing economy.

Auszug aus dem Buch

Summary of Chapters

1. Introduction: Presents the research topic, the environmental crisis, and the motivation for examining the de-growth strategy as an alternative to conventional economic growth models.

2. From growth critics to de-growth: Provides a historical overview of growth theories and the emergence of the de-growth concept within ecological and environmental perspectives.

3. Economics of the concepts for sustainability: Analyzes the different theoretical frameworks for sustainability, covering neoclassical, ecological, and post-Keynesian approaches.

4. De-growth modelling in the Post-Keynesian economic framework: Investigates the technical feasibility of modeling a zero-growth scenario using Kaleckian growth models, including the impact of financialisation and government intervention.

5. Policy recommendations: Discusses the political and fiscal mechanisms required to support a sustainable, non-growing economy.

6. Conclusion: Synthesizes the research findings, reflecting on the feasibility of de-growth and suggesting directions for future research.

Keywords

De-growth, Sustainability, Consumption and Production patterns, Ecological economics, Environmental economics, Post-Keynesian economics, Kaleckian Model, Macroeconomic stability, Taxation, Distribution policy, Zero-growth, Capital accumulation, Financialisation, Economic policy, Resource limitation.

Frequently Asked Questions

What is the primary focus of this thesis?

The thesis explores the macroeconomic feasibility of a de-growth strategy—a concept that advocates for moving beyond economic growth to address environmental degradation—while maintaining macroeconomic stability.

Which economic schools of thought are analyzed?

The author analyzes and integrates perspectives from ecological economics and post-Keynesian economics, while contrasting them with the orthodox neoclassical approach.

What is the core objective of the research?

The goal is to determine if a zero-growth strategy can be sustained within a modern economic system and to identify the specific economic conditions or policy interventions required for such stability.

What scientific methodology is utilized?

The research employs a qualitative and descriptive analysis, applying post-Keynesian methodologies and the Kaleckian growth model to simulate a zero-growth economic environment.

What does the main body of the work cover?

The main part examines historical growth theories, compares environmental economic frameworks, and models the impact of financialisation and government fiscal interventions on the viability of a zero-growth capital accumulation rate.

Which keywords best characterize this work?

Key terms include De-growth, Sustainability, Kaleckian Model, Post-Keynesian economics, macroeconomic stability, and environmental regulation.

What role does the Kaleckian model play in this study?

The Kaleckian model serves as the technical backbone for the analysis, helping the author to model the relationship between aggregate demand, investment, and income distribution under the constraint of zero growth.

How does the author view government intervention in a de-growth economy?

Government intervention is deemed essential; the author proposes tools such as specific taxation on savings and resources to "demotivate" excessive capital investment while maintaining social welfare.

Is the de-growth strategy considered feasible in practice according to the author?

The author concludes that while the framework is theoretically intriguing and offers a potential path for transformation, it remains politically and practically difficult to implement, requiring complex adjustments that may not fit well within the current capitalistic system.