The Political Economy and Media Coverage of the European Economic Crisis

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The Political Economy and Media Coverage of the European Economic Crisis ‘Austerity as a policy harms the many and benefits the few. In a democracy that’s sup- posed to be hard to sell. Yet the democracies most effected by the European financial crisis saw no such democratic revolt. Mercille tells us why. Updating and deploying the Chomsky-Herman propaganda model of the media in a systematic and empirical way, he shows us how alternative policies are sidelined and elite interests are protected’. Mark Blyth, Professor of International Political Economy, Brown University ‘This is one of the most important political economy books of the year. Julien Mercille’s book is set to become the definitive account of the media’s role in Ireland’s spectacular and transformative economic boom and bust. He argues convincingly that critical poli- tical economic perspectives are a rarity in the Irish media and Mercille’s devastating critique painstakingly chronicles the persistent failures of the Irish media’. Dr. Tom McDonnell, Macroeconomist at the Nevin Economic Research Institute (NERI) ‘The European economies remain trapped in high levels of unemployment while more austerity is promoted as the solution. Yet the media plays a key role in presenting these austerity policies as though “there is no alternative”. This book, with a focus on Ireland, provides compelling evidence on the ideological role of the media in the presentation of the policies favoring the economic, financial and political elites. A highly recommended read for its analyses of the crises and of the neo-liberal interpretation from the media’. Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds ‘The basic story of the economic crisis is simple. The world economy was being driven by housing bubbles in most major wealthy economies. When these bubbles burst, there was nothing to replace this massive source of demand, leading to a prolonged period of underemployment and stagnation. Julien Mercille tells this story well, and explains the media’s role in convincing the public that it was all very complicated and that government policy can do little to improve the situation’. Dean Baker, Co-director of the Center for Economic and Policy Research ‘Julien Mercille has written a superb case study of the role of news media in shaping fundamental policy debates surrounding the economy, particularly during a time of crisis. It provides a model not only for examining the Irish or European press, but the news media across the world. The political implications for those concerned with having a solid and sustainable economy, and a vibrant democracy, could not be more clear’. Robert W. McChesney, co-author of The Endless Crisis ‘Julien Mercille has produced outstanding research on the role of the Irish media, demonstrating the importance of property relations among the media, banks, and real estate, not to mention the close connections with the state machinery and the grip of neoliberal ideology. Meticulous, balanced and clear, his work casts light on the media interests that have abetted the destruction of the Irish economy. This book is a model for similar research across the Eurozone periphery’. Costas Lapavitsas, Professor of Economics, School of Oriental and African Studies, University of London This page intentionally left blank The Political Economy and Media Coverage of the European Economic Crisis The European economic crisis has been ongoing since 2008 and while austerity has spread over the continent, it has failed to revive economies. The media have played an important ideological role in presenting the policies of economic and political elites in a favourable light, even if the latter’s aim has been to shift the burden of adjustment onto citizens. This book explains how and why, using a critical political economic perspective and focusing on the case of Ireland. Throughout, Ireland is compared with contemporary and historical examples to contextualize the arguments made. The book covers the housing bubble that led to the crash, the rescue of financial institutions by the state, the role of European institutions and the International Monetary Fund, austerity, and the possibility of leaving the eurozone for Europe’s peripheral countries. Through a systematic analysis of Ireland’s main newspapers, it is argued that the media reflect elite views and interests and downplay alternative policies that could lead to more progressive responses to the crisis. Julien Mercille is a Lecturer in the School of Geography, Planning and Environmental Policy, University College Dublin, Ireland. Routledge Frontiers of Political Economy 1 Equilibrium Versus 7 Markets, Unemployment and Understanding Economic Policy Towards the rehumanization Essays in honour of of economics within social Geoff Harcourt, volume two theory Edited by Philip Arestis, Mark Addleson Gabriel Palma and Malcolm Sawyer 2 Evolution, Order and Complexity 8 Social Economy Edited by Elias L. Khalil and The logic of capitalist Kenneth E. Boulding development Clark Everling 3 Interactions in Political Economy 9 New Keynesian Economics/Post Malvern after ten years Keynesian Alternatives Edited by Steven Pressman Edited by Roy J. Rotheim 4 The End of Economics 10 The Representative Agent in Michael Perelman Macroeconomics James E. Hartley 5 Probability in Economics Omar F. Hamouda and 11 Borderlands of Economics Robin Rowley Essays in honour of Daniel R. 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