Fourth Roundtable of the Next Left Economic Circle – The fiscal compact: an heterodox analysis

The fiscal compact: an heterodox analysis” is the title of this new roundtable with guest […]

The fiscal compact: an heterodox analysis” is the title of this new roundtable with guest speaker Malcolm Sawyer, Professor of Economics at Leeds University Business School.

One of the cornerstones of the new fiscal compact put forward by European leaders is the concept of “structural deficit” which should not exceed 0.5% of member states’ nominal GDP and is to be passed into law at constitutional level or an equivalent. The failure to respect such a limit would be automatically sanctioned, reinforcing the pro-cyclical character of European economic policy.

These views seem to us very grounded in orthodox theory and may result in negative outcomes, reinforcing the current macroeconomic, financial and sovereign crisis. However, some views and policies, based on alternative heterodox economic thinking, allowing to expect a higher and more balanced and sustainable economic growth, can be envisaged. These are the points developed during this roundtable

See the slides of the Malcolm Sawyer’s presentation

Meeting documents:

The contradictions of balanced structural government budgets – University of Lead – Malcolm Sawyer

Background

The roundtables of the next Left Economic Circle bring together progressive economists from different European institutions, from civil society organisations and the business sector, who wish to evaluate the economic theoretical corpus behind economic policy proposals. The roundtables consist of regular public meetings, co-organised by the Foundation for European Progressive Studies (FEPS) and the Global Progressive Forum (GPF) and are co-chaired by Liem Hoang-Ngoc (MEP, S&D Group at the European Parliament) and Stephany Griffith-Jones (Professor of Economics, Columbia University). They take place in the European Parliament in Brussels (translation in French and English) at lunch time. For each roundtable, a renowned economist is invited as a guest speaker.

See the former roundtables of the next Left Economic Circle

Speaker  

After studying Mathematics at the Oxford University, Professor Malcolm C. Sawyer studied economics in London. He taught economics in London, York and Leeds, and became head of Economics Division, at the University of Leeds in 1998. Since 2003, he has been Member of Steering Committee, Conference of Heads of University Departments of Economics. He was also Guest Research Fellow, International Institute of Management, Berlin (1985), and visiting scholar, at the New School (1997), at La Trobe University (Melbourne, Australia, March/April 2002), at Korea University, (Seoul, Korea, May/June 2002), and at the University of Missouri Kansas City, USA, (September/November 2002).  Malcolm C Sawyer served as consultant and advisor to the OECD on public expenditure on income maintenance and health provision (substantial contributions to O.E.C.D. Public Expenditure on Income Maintenance, 1976 and Public Expenditure on Health, 1977) and on income and wealth distribution as part of their Social Indicators Programme (1975-1981), to EEC on industrial matters, to Royal Commission on the Distribution of Income and Wealth (1977-8) to National Institute for Economic and Social Research on Unemployment (1984-85).  He published many books, mainly with P. Arestis including, among others: Re-examining Monetary and Fiscal Policies in the Twenty First Century (2004),  The Euro: Evolution and Prospects (2001), A Handbook Of Alternative Monetary Economics, Financial Liberalization : Beyond Orthodox Concerns (2006), The Rise of the Market : Critical Essays on the Political Economy of Neo Liberalism (2004), ‘Inflation targeting and central bank independence: we are all Keynesians now! or are we?’ (Journal of Post Keynesian Economics / Summer 2006), ‘The nature and role of monetary policy when money is endogenous’, and ‘Can monetary policy affect the real economy?’(European Review of Economics and Finance).

Find all related publications
Publications
06/07/2022

Europe needs high-tech talent: Investing in people to counter oligopolistic dynamics and dependencies in technology markets

This policy brief is part of a series that analyses EU policies for more strategic […]
06/07/2022

Countering economic coercion: how can the European Union succeed?

This policy brief assesses how the EU can bolster its response and defence mechanisms against […]
06/07/2022

Leveraging trade policy for the EU’s strategic autonomy

In a context of increasing weaponisation of interdependence – highlighted by the pandemic and Russia’s […]
04/07/2022

Partnerships and European strategic autonomy: How to turn them into a win-win approach

To become more strategic and autonomous, the European Union has to better use its global […]
Find all related news
News
21/06/2022

Ahead of this week’s European Council, progressive MEPs and MPs urge EU leaders to take resolute actions toward the Western Balkans

On 17 and 18 June, the ‘Friends of the Western Balkans’, the newly established network […]
17/06/2022

First meeting of the Friends of the Western Balkans

How do we get out of the dead end in the enlargement process?
10/06/2022

FEPS launches a new website!

After months of work, FEPS’s new website is now online!  This new website offers a […]
09/06/2022

FEPS holds the 2022 General Assembly

This week, FEPS held the 2022 General Assembly (GA), the yearly meeting gathering all members […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

Visioni e strategie per disegnare il futuro europeo 

by La Nazione 23/05/2022