Who Says Labor Laws Are “Luxuries”? Servaas Storm and Jeronim Capaldo

A Standard recommendation given to late-industrializing economies by the economic advisors of the World Bank and the International Monetary Fund has been to refrain from imposing regulations on the labor market, or if such regulations are already in place, to abolish them. If you are a policymaker in a late-industrializing country, chances are you’ve been told that your problem, what is really holding your economy back, is excessive labor regulation – it is making your exports uncompetitive and chasing away capital. Laws “created to help workers often hurt them,” stated the 2008 World Bank’s Doing Business Report. To avoid any…

The Financialization of Everything Servaas Storm

The following article forms the Introduction to a set of 10 articles which assess the logic and consequences of ‘financialization’ across a range of geographic, economic and social scales — deep down, at the level of ‘ideas’, and also by providing ‘knock-out evidence’ on the social inefficiency of a capitalism ‘without compulsions’ for finance. The authors in the Debate expose how establishment economics has been hiding its reactionary political agenda behind the pretence of scientific neutrality. The financial emperor wears no clothes. Full Article (This article was originally posted at Wiley Online Library on January 24, 2018.)

Euroland: Will the Netherlands be the next domino to fall? Servaas Storm

The Dutch go the polls on March 15, a few weeks ahead of the French vote to choose the successor to Président François Hollande and well before Bundeskanzlerin Angela Merkel seeks a fourth term in September. The Dutch vote takes on a wider European significance, however, because Dutch voters — who rebelled against a EU ‘constitution’ in 2005 and last year rejected the association treaty between the EU and Ukraine in a referendum — have in the past proved to be a good gauge of European sentiment. Click to read the full article

Structural Change Servaas Storm

There has been a renewed interest in industrialization and structural change in the mainstream of development economics, which, however, doesn’t imply a rejection of the neoliberal approach to development; the default recommendation is still the market and static comparative advantage and the main task of governments is to impose institutional reforms and improve governance. structural_change (Download the full text in PDF format) (This article was originally published in Development and Change, by International Institute of social Studies, The Hague)

CETA without Blinders: How cutting ‘trade costs and more’ will cause unemployment, inequality and welfare losses Pierre Kohler and Servaas Storm

Contrary to the positive outcomes as projected by the proponents of CETA, this paper shows that it will lead to intra-EU trade diversion and in the current context of tepid economic growth, competitive pressures induced by CETA will cause unemployment, inequality and welfare losses. ceta (Download the full text in PDF format) (This article was originally published as GDAE Working Paper No. 16-03.)

Myths, Mix-ups, and Mishandlings: Understanding the Eurozone crisis Servaas Storm and C.W.M. Naastepad

The real cause of the Eurozone crisis resides in unsustainable private sector debt leverage that was aided and abetted by the liberalization of European financial markets and a global banking glut. Understanding_Eurozone_Crisis (Download the full text in PDF format) (This article was originally published in the International Journal of Political Economy, 45: 46–71, 2016.)

Crisis and Recovery in the German Economy: The real lessons Servaas Storm and C.W.M. Naastepad

The main lesson to draw from Germany's rebound from crisis is that if a country's technological competitiveness is stronger and consensual macro-governance structure is more effective, the country will more likely weather a crisis. German_Economy (Download the full text in PDF format) (This article was originally published in the journal, "Structural Change and Economic Dynamics", 32 (2015) 11-24.)

How Austerity Economics Turned Europe into the Hunger Games An interview with Servaas Storm

Lynn Parramore: What do we need to know about economists and their relationship to power? Servaas Storm: In a brief moment after financial crisis, mainstream economists did some soul-searching and rethinking. But once the economy stabilized (somewhat) thanks to large-scale government support, most went back to “normal,” rebuilding their professional status as neutral technocratic advisors and portraying macroeconomists as mere engineers solving practical problems. This is a chutzpah. Macroeconomics starts off from vision, moral values, perspectives and ideology, which color any analysis and need to be disclosed and debated. This was clear in the old days to economists as diverse…

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