Macroeconomics of de-growth - Can a de-growth strategy be stable?

Master's Thesis from the year 2012 in the subject Economics - Macro-economics, general, grade: excellent, Berlin School of Economics and Law, language: English, abstract: This paper examines an alternative strategy for sustainability and economic developmentbased on de-growth assumptions. This concept is proposed by ecological economists, whoconsider there to be a natural limitation on economic growth, imposed by necessaryenvironmental regulation. Moreover they oppose the neoclassical ideas, which are consideredas pro growth theories, arguing that economic growth itself does not contribute to the socialand economic development, therefore it should not be sustained. Accepting this propositionthe author makes an attempt to verify the feasibility of a de-growth strategy formacroeconomic stability, applying a post-Keynesian methodology for analysis. The Kaleckianmodel is used as the basic approach to derive the model restrictions for the de-growth strategythat maintains macroeconomic stability. The findings of this paper will provide policyrecommendations to sustain macroeconomic stability, while taking full account of the degrowthassumptions.