The 2008 Global Financial Crisis has led to a period of stagnation and divergent economic growth performances. The project investigates institutional sources of such divergent growth, considering both macroeconomic and institutional factors as well as their interaction. Specifically, we study (i) whether differences in financial and housing institutions explain why some countries were hit harder by financial downturns; (ii) whether differences in industrial relations and skill policies determine the successfulness of maintaining growth through exports; (iii) whether differences in fiscal and monetary policy coordination explain the use of government spending to support growth.
At the theoretical level, the project combines post-Keynesian macroeconomics with a comparative institutionalist analysis of demand formation at the national, sectoral, and actor level. Empirically, we focus on the growth experiences of European countries, considering northern Europe as the export-oriented industrial core, Anglo-Saxon countries as the financial core, and southern Europe as the financialised periphery.
The project builds on previous research of the team's members: Engelbert Stockhammer's work on Post-Keynesian macroeconomic foundations for Comparative Political Economy; Karsten Kohler's and Engelbert Stockhammer's research on financial cycles, austerity, and competitiveness in growth models since the Global Financial Crisis; Chiara Benassi's work on the role of industrial relations institutions for export performance; and Inga Rademacher's research on the role of fiscal-monetary relations for economic policy outcomes.