Secular stagnation and progressive economic policy alternatives

Ozlem Onaran

No PKWP1609, Working Papers from Post Keynesian Economics Society (PKES)

Abstract: This paper summarizes two main findings in the Post-Keynesian literature regarding the linkages between financialization, income distribution, accumulation and productivity. Firstly, at the core of secular stagnation lies the missing link between profits and investment. Secondly, rising inequality and financialization have been the main reasons for this missing link and hence the major brakes against capital accumulation and growth. The paper concludes with alternative progressive policies based on a coordinated policy mix of equality-led development and public investment.

Keywords: wage share; inequality; wage-led growth; financialization; secular stagnation; public investment (search for similar items in EconPapers)
JEL-codes: E12 E22 E25 (search for similar items in EconPapers)
Pages: 18
Date: 2016-05
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Secular stagnation and progressive economic policy alternatives (2016)
Working Paper: Secular stagnation and progressive economic policy alternatives (2016)
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