Abstract: The question, how an economy can be organized without growth has received little attention from many strands of macroeconomics. In this paper I investigate this question, from the point of view of three prominent strands of macroeconomic theories: neoclassical, post-Keynesian and neo-Marxian approaches. The view of neoclassical theories is, that we need a different technological development path, less capital accumulation (driven by less savings) and less labor (driven by a change in households preferences). Whether these driving mechanisms are the true causes for capital accumulation and working hours is questionable though, and technological change is not explained in the theories. In post-Keynesian theories, a reduction of aggregate demand as well as a change of technological change towards less increases in labor-productivity are needed. In neo-Marxian theories, the mechanisms leading to capital accumulation and labor-saving technologies, both on the firm and the macro-level, need to be addressed.
This media entry was a contribution to the special session “Macroeconomics of Degrowth I” at the 4th International Degrowth Conference in Leipzig in 2014.