Authors: Davide Gualerzi; Edward J. Nell
Addresses: Department of Economic Sciences, 'Marco Fanno', School of Political Sciences, University of Padua, Via del Santo, 33 35123 Padova, Italy. ' The New School for Social Research, 6 East 16th Street, New York, NY 10003, USA
Abstract: This paper argues that it remains unclear whether sufficient new markets can develop to restore vigorous growth to the advanced economies. Using the example of the USA, it reviews how bubbles sustained growth prior to 2007. It then considers the likelihood of new sources of growth emerging as a longer term solution to the current crisis, dependent on the transformation of ICTs, the green economy, bio-tech and healthcare. It offers a skeptical assessment of each of these possibilities and suggests that in addition to Keynesian explanations of fluctuations which focus on the way that allowing |animal spirits| of investors creates instability research is also needed on whether private markets have the capacity to sustain longer development without a substantial process of restructuring and government intervention.
Keywords: new markets; economic bubbles; financial bubbles; ICT; green economy; biotech; healthcare; Keynesianism; animal spirits; financial crisis; economic growth; long-term depression; USA; United States; biotechnology; instability; government intervention; economic crisis.
International Journal of Management Concepts and Philosophy, 2011 Vol.5 No.3, pp.290 - 310
Available online: 15 Nov 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article