The paper examines the main instruments involved in Europe's "new" strategy in 2012. It explains why none are suited to the current challenges in terms of growth recovery and public debt control. The reason is basically that all the instruments focus on factor cost reductions (capital and...

This paper proposes a Keynesian view of the current financial crisis, its economic consequences, and solutions to get out of it. We argue that the mainstream economists could not see the crisis coming because of the self-adjusting properties of their economic models. Keynes's theory, on the...