Sebastian Dullien Book order

The recent euro crisis and the dramatic increase of unemployment in some euro countries have triggered a renewed interest in a fiscal capacity for the European Union to stabilize the economy of its member states. One of the proposed instruments is a common European unemployment insurance. In this book Sebastian Dullien from the HTW Berlin provides and evaluates a blueprint for such a scheme. Building on lessons from the unemployment insurance in the United States of America, he outlines how a European unemployment benefit scheme could be constructed to provide significant stabilization to national business cycles, yet without strongly extending social protection in Europe. Macroeconomic stabilization effects and payment flows between countries are simulated and options, potential pitfalls and existing concerns discussed.

Sets out realistic alternatives to the neoliberal capitalism that caused the global crisis

The world economy faces a significant crisis, stemming from the U.S. subprime mortgage market turmoil that began in 2007, leading to a global recession and financial speculation threatening the European Monetary Union. In response, there has been a notable shift in economic policies and thinking. The Keynesian stimulus packages implemented worldwide have largely mitigated a deeper decline in output, unemployment, and poverty, reinstating fiscal policy as a crucial tool for macroeconomic stabilization. Additionally, there is a growing consensus on the need for stricter regulation of financial markets. Central banks have adopted unconventional measures, including purchasing asset-backed securities to stabilize both the financial system and the economy. However, the crisis also reveals deeper structural issues, such as rising income and wealth inequalities over the past three decades and global trade imbalances. The effectiveness of policymakers in addressing these challenges remains uncertain. The chapters explore various aspects of the crisis, analyzing its structural causes, evaluating policy responses with a focus on Europe, and proposing reforms for financial markets and a broader Keynesian New Deal.