What is it about?
The failure of exceptional monetary measures pursued in response to the financial crisis in advanced economies to achieve a strong recovery has created a widespread concern that these economies suffer from a chronic demand gap and face the prospect of stagnation. Growing inequality, notably the secular decline in the share of wages and financialization are the main factors. Neither spending booms driven by financial bubbles, nor exporting unemployment through trade provide sustainable solutions. It is necessary to rebalance capital and labour, restrain finance and assign a greater role to the public sector in aggregate demand management and income and wealth distribution.
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Why is it important?
There is a widespread concern about growing inequality without, however, an adequate understanding of its causes and effects. This paper makes an attempt to fill this gap.
Perspectives
This contribution is a product an ongoing process of learning about distribution, growth and development that spans the last three decades through the work done by the author in UNCTAD and the South Centre.
YILMAZ AKYUZ
Read the Original
This page is a summary of: Inequality, financialisation and stagnation, The Economic and Labour Relations Review, November 2018, SAGE Publications,
DOI: 10.1177/1035304618812572.
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