Book Description

The economic crisis in Europe has been more serious than in other regions of the world and has had repercussions on international society. How is it possible that in the United States, where the crisis originated due to the mismanagement of the financial sector, the recovery is being much faster? The euro is the story of a stateless currency and, worse still, devoid of a political project. That is why they denounce the shortcomings of the European leaders who, in the storm, have reacted too little and too late. Europe has experienced almost a decade of stagnation, which in the case of some countries has become depression. The financial crisis of 2008 has been the first truly global crisis. While in Spain three financial, fiscal and economic crises were unleashed at the same time. And it had never before experienced such a long and deep recession. Democracy and the rule of law are in turn weakened by the growing concentration of power in the hands of the most privileged. It delves into the origins of modern growth. There are some worrying parallels with previous crises in Latin America or Japan, with high levels of indebtedness and responses based on contractive policies. On the other hand, Europe is the most advanced attempt to explicitly articulate strategies of supranational governance that to some extent foreshadow the hopes and difficulties of a global system. In general it is an optimistic book that bets on the exit of the crisis thanks to strategies of global or supracional governance. The crisis has made evident the lack of knowledge that economists have of the financial phenomenon, so defending macroprudential supervision can again give the impression that the risks are better controlled. But it can reactivate the moral hazard that leads to assuming more risks than the system can assume. Economists have lived in a black hole in these thirty years. Without wishing to penalize savings over consumption or excessively depend on public spending, we defend the implementation of all political measures for a supranational fiscal policy that may allow a certain moral hazard in the creation of a basic income. At the same time, there is talk of building synergies and creative models of economic activities, because where the great synergies occur is where trade creates the most lively wealth. But that is also where innovation is, because innovation is what creates that wealth, and that competitive advantage.