EU Aggregate Demand As a Way out of Crisis? Engaging the Post‐Keynesian Critique

Abstract

Post‐Keynesians have delivered an important advance in providing explanations of the Eurozone crisis, not the least in demonstrating how the formation of the European integration project lacked the means to manage effectively the macroeconomic imbalances between core and peripheral spaces across the region. Through a critical engagement with such descriptions, this article argues that to account more adequately for the formation of the asymmetrical and crisis‐ridden forms of development across the Eurozone it is necessary to focus on the uneven and combined development of Europe's peripheral spaces and their integration into an expanded free trade regime since the 1980s. It is through a focus on the structuring condition of uneven and combined development shaped by capitalist social relations of production and attendant class struggles that we can locate the origins of the present crisis.