Keywords: financial crises, deflation, effective demand, G20, Group of Twenty, International Monetary Fund, economic imbalances, IMF, surpluses, Joan Robinson, real economy, capital accumulation, public funding, failed banks, banking failures, financial institutions, stability, structural imbalances, international imbalances, full employment, green economics
The economic situation and (tentatively) prospects: September 2009 (revised)
The paper analyses the evolution of the financial crisis as it spread throughout the real economy during 2009. It is argued that public funding of failed banks and financial institutions does not represent a path to a more stable financial system. It is also pointed out that structural international imbalances are not likely to be solved. In this context the link between green economics and the road to full employment must be sought in a different conceptual framework such as Joan Robinson's Accumulation of Capital.