FESSUD members contributed with a special session at the 19th Conference of the Research Network Macroeconomics and Macroeconomic Policies (FMM): The Spectre of Stagnation? Europe in the World Economy in Berlin, 22–24 October 2015.
The session, chaired by Eckhard Hein, leader of WP3, was entitled ‘FESSUD: Financialisation, crises and perspectives’ and included the following presentations.
The first presentation “Financialisation and the Financial Crisis in Iceland“ was by Björn Rúnar Guðmundsson and is based on FESSUD studies in Financial Systems No. 34. It describes the long-run financialisation processes in Iceland as an evolving process of domestic and global forces, which has led to a strong expansion of financial activity, the financial crisis in Iceland and the developments thereafter.
The second presentation “The impact of the crisis on the coherence of the Eurozone” by Jesús Ferreiro is based on a deliverable in WP3. It is common work with Catalina Gálvez, Carmen Gómez and Ana González and will be available as FESSUD working paper soon.
The third presentation was by Nina Dodig on “Financialisation, Crisis and Perspectives: an analysis for 15 countries”. The paper on which this presentation was based synthesizes the country studies which were conducted under WP 3. It examines the growth regimes of those countries before and after the crisis and found a regime shift of many formerly debt-led or domestic demand-led countries Euro area countries towards an export-led regime. The paper is common work with Eckhard Hein and Daniel Detzer and is published as FESSUD working paper No. 110.
The fourth presentation by Daniel Detzer with the title “Financialisation, Debt and Inequality – Scenarios Based on a Stock flow Consistent Model” presented work in progress for Work package 11. Based on a stock flow consistent model for Euro area countries the impact of further increasing inequality on the macroeconomic performance, in particular growth and external balances was examined. Preliminary results suggest that further increasing inequality will add to stagnating tendencies in the Euro area as a whole, make it an area depending on export growth and add to global imbalances.