Contributors vii
1 Introduction: Politics in the Age of Austerity 1
Armin Schäfer and Wolfgang Streeck
2 Public Finance and the Decline of State Capacity in Democratic
Capitalism 26
Wolfgang Streeck and Daniel Mertens
3 Tax Competition and Fiscal Democracy 59
Philipp Genschel and Peter Schwarz
4 Governing as an Engineering Problem: The Political Economy of
Swedish Success 84
Sven Steinmo
5 Monetary Union, Fiscal Crisis and the Disabling of Democratic
Accountability 108
Fritz W. Scharpf
6 Smaghi versus the Parties: Representative Government and
Institutional Constraints 143
Peter Mair
7 Liberalization, Inequality and Democracy’s Discontent 169
Armin Schäfer
8 Participatory Inequality in the Austerity State: A Supply-Side
Approach 196
Claus Offe
9 From Markets versus States to Corporations versus Civil
Society? 219
Colin Crouch
10 The Normalization of the Right in Post-Security Europe
239
Mabel Berezin
11 The Crisis in Context: Democratic Capitalism and its
Contradictions 262
Wolfgang Streeck
Notes 287
Index 303
Armin Schafer is a researcher at the Max Planck Institute forthe Study of Societies in Cologne, Germany. Wolfgang Streeck is Managing Director at the Max Planck Institutefor the Study of Societies in Cologne, Germany.
"Poses (very well) the questions that will shape our world for manyyears to come." European Voice "Nothing less than a novel, comprehensive and syncretic analysis ofwhat has changed in the relationship between capitalism anddemocracy over the past thirty years - and into the future." Philippe C. Schmitter, European University Institute "Insightful and engaging, the essays in this volume cover aremarkably wide range of topics related to the fundamental questionof our time: what happens to democracy when governments have solittle fiscal room to manoeuvre? A great read that will inspire newthinking and research." Jonus Pontusson, University of Geneva " Politics in the Age of Austerity is a hugely importantcontribution to the contemporary literature on the politicaleconomy of the advanced capitalist countries. Featuring a series ofpenetrating essays by some of the field s foremost theorists,the book offers a powerful and sobering picture ofthe dilemmas and constraints that governments face as they seek toreconcile the increasingly conflicting demands of twoconstituencies voters and 'the markets'. As such, it shedsnew light on the enduring question of the evolving relationshipbetween democracy and capitalism." Kathleen Thelen, MIT
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