In this innovative book, Hideko Magara brings together an expert team to explore both the possibilities and difficulties of transitioning from a neoliberal policy regime to an alternative regime through drastic policy innovations. The authors argue that, for more than two decades, citizens in developed countries have witnessed massive job losses, lowered wages, slow economic growth and widening inequality under a neoliberal policy regime that has placed heavy constraints on policy choices.The book explores, both theoretically and empirically, the possibility of transition to a new political economic paradigm by seeking feasible answers to questions such as: why has such a regime persisted for a long period of time despite its poor policy performance?; is it possible for democracy to overcome economic crisis through its electoral mechanisms?; and, under what conditions can each government convert crisis of its economy into growth? The book concludes that under different policy regimes, whether Keynesian or neoliberal, there are a variety of growth regimes, and economic performances will consequently vary considerably. The authors ultimately argue that policy innovations need not only political leadership but also the very creation of a new economic theory in order to break a critical juncture of economic stalemates. Economic Crises and Policy Regimes will appeal to policy makers and practitioners internationally and is an important resource for political scientists, economists and sociologists. Advanced students of comparative politics, comparative political economy and institutional economics will also find much to benefit them in this book. Contributors include: B. Amable, R. Boyer, L.C. Bresser-Pereira, N. Fujita, K. Fukuda, M. Ido, H.B. Im, H. Magara, A. Martinelli, H. Nishi, S. Palombarini, A. Przeworski, S. Sacchi, H. Shiratori, T. Yamada, Y. Yanai

Since the global financial crisis of 2008, advanced economies have been making various efforts to overcome the economic impasse. While the contrast between the countries that have escaped from the crisis relatively quickly and those still suffering from serious problems is becoming clearer, a new economic crisis stemming from newly emerging economies has again impacted advanced economies. In retrospect, both leftist and rightist governments in advanced economies pursued expansive macroeconomic and welfare policies from the post-WWII period to the oil shocks of the 1970s. While we recognise that the particular policy regime in this 'Golden Decades' during which the left and the right implemented similar policies cross-nationally, were characterised by outstanding economic growth in each country, the specific growth patterns varied across countries. Different social coalitions underpinned different growth models. This book is premised on tentative conclusions that Magara and her research collaborators have reached as a result of three years of study related to our previous project on economic crises and policy regimes. Recognising the need to analyse fluid and unstable situations, we have set up a new research design in which we emphasise political variables-whether political leaders and citizens can overcome the various weaknesses inherent in democracy and escape from an economic crisis by establishing an effective social coalition. A new policy regime can be stable only if it is supported by a sufficiently large coalition of social groups whose most important policy demands are satisfied within the new policy regime.

Democratic capitalism in developed countries has been facing an unprecedented crisis since 2008. Its political manageability is declining sharply. Both democracy and capitalism now involve crucial risks that are significantly more serious than those observed in earlier periods. The notion of policy regimes has gained new significance in analysing the possibilities for a post-neoliberal alternative. Policy innovations directed towards an economic breakthrough require both political leadership and a new economic theory. The processes of political decision making have become quite distant from the public realm, and a limited number of economic and political elites exert influence on public policy. This book examines, from a policy regime perspective, how developed countries attempt to achieve such a breakthrough at critical junctures triggered by economic crises. It initially assesses the nature of the present crisis and identifies the actors involved. Thereafter, it provides an analytical definition of a crisis, stressing that most crises contain within them the potential to be turned into an opportunity. Finally, it presents a new analytical design in which we can incorporate today's more globalized and fluid context.

Since the global financial crisis of 2008, advanced economies have been making various efforts to overcome the economic impasse. While the contrast between the countries that have escaped from the crisis relatively quickly and those still suffering from serious problems is becoming clearer, a new economic crisis stemming from newly emerging economies has again impacted advanced economies. In retrospect, both leftist and rightist governments in advanced economies pursued expansive macroeconomic and welfare policies from the post-WWII period to the oil shocks of the 1970s. While we recognise that the particular policy regime in this 'Golden Decades' during which the left and the right implemented similar policies cross-nationally, were characterised by outstanding economic growth in each country, the specific growth patterns varied across countries. Different social coalitions underpinned different growth models. This book is premised on tentative conclusions that Magara and her research collaborators have reached as a result of three years of study related to our previous project on economic crises and policy regimes. Recognising the need to analyse fluid and unstable situations, we have set up a new research design in which we emphasise political variables-whether political leaders and citizens can overcome the various weaknesses inherent in democracy and escape from an economic crisis by establishing an effective social coalition. A new policy regime can be stable only if it is supported by a sufficiently large coalition of social groups whose most important policy demands are satisfied within the new policy regime.

For countries undertaking economic or political reform the case of Italy and Japan is both highly instructive and sobering. The Politics of Structural Reforms reveals what Italy and Japan gained and lost through a series of social and industrial reforms in the 1990s and 2000s, and why the changes they made in their policies have had little impact in softening the recent economic crisis.Italy and Japan achieved miraculous economic growth in the postwar period. While their financial and manufacturing sectors cooperated in achieving international competitiveness, their political systems grew alike. The weaknesses of both economic and political compacts became apparent at the beginning of the 1990s, when the two countries were caught in an economic slump and fell into a stalemate that lasts to the current day. Since the early 1990's they have undergone a series of structural reforms, and momentous changes in their political systems. Through a detailed comparative analysis of the reforms of both countries in areas such as corporate governance, the labour market, social policy, and in their electoral systems the authors explain why these reforms have not resulted in economic or political success. This innovative volume will be an excellent resource for political scientists specialized in political economy and industrial relations, labour economists and sociologists as well as policy practitioners and corporate governance specialists. Moreover, it is an enjoyable and informative read for all scholars and those interested in social and political reform. Contributors: D. Checchi, A.M. Chiesi, R. Dore, M. Ido, H. Magara, S. Sacchi, P. Segatti, T. Shinkawa, M. Suzuki

Democratic capitalism in developed countries has been facing an unprecedented crisis since 2008. Its political manageability is declining sharply. Both democracy and capitalism now involve crucial risks that are significantly more serious than those observed in earlier periods. The notion of policy regimes has gained new significance in analysing the possibilities for a post-neoliberal alternative. Policy innovations directed towards an economic breakthrough require both political leadership and a new economic theory. The processes of political decision making have become quite distant from the public realm, and a limited number of economic and political elites exert influence on public policy. This book examines, from a policy regime perspective, how developed countries attempt to achieve such a breakthrough at critical junctures triggered by economic crises. It initially assesses the nature of the present crisis and identifies the actors involved. Thereafter, it provides an analytical definition of a crisis, stressing that most crises contain within them the potential to be turned into an opportunity. Finally, it presents a new analytical design in which we can incorporate today's more globalized and fluid context.