Institutions, Instability, and Inequality
The book introduces a 3-equation model that integrates the financial system and addresses inequality, providing students with a practical framework to tackle ongoing macroeconomic challenges. By connecting contemporary research and policy, the authors equip readers to understand and analyze the implications of the financial crisis and the Great Recession, fostering critical thinking in macroeconomic theory and practice.
This book explores, theoretically and empirically, the consequences of 'Big Data' for the politics of social protection. It argues that the information revolution enables the formation of evermore fine-grained insurance pools, which in turn threatens the solidarity of the welfare state. The book also considers policies to limit marketization.
It is widely believed that democracy and the advanced nation-state are in crisis due to globalization and global capitalism, leading to rising inequality and populism. However, two leading political economists argue that this perspective is misguided. They contend that advanced democracies are resilient and have historically maintained a mutually beneficial relationship with capitalism. Despite the chaos of the past century—wars, economic crises, social changes, and technological revolutions—democratic states have continually reinvented their economies through significant public investment in research and education, competitive product markets, and workplace cooperation. This investment has created numerous well-paying jobs for the middle class, aligning the aspirations of families with electoral support for political parties. While gains at the top have been shared with the middle class (though not the bottom) through a robust welfare state, advanced capitalism is not unrestrained; it flourishes under democracy because it cannot undermine it. Although populism, inequality, and poverty are pressing issues, they are failures of democracy that must be addressed through democratic means.
This book, first published in 2005, is based on the key idea that social protection, both inside and outside the state, can be understood as protection of specific investments in human capital. It offers a systematic explanation of popular preferences for redistributive spending, the economic role of political parties and electoral systems, and labor market stratification.