The Macroeconomics of Finance-dominated Capitalism – A Kaleckian perspective
[dropcap]F[/dropcap]rom a macroeconomic perspective four features of finance–dominated capitalism can be distinguished: first, the effect on income distribution, second, the effects on investment in capital stock, third, the effects on household debt and consumption, and fourth, the effects on net exports and current account balances. We extend and apply Kaleckian models of distribution and growth in order to examine these features focusing on short-run effects on aggregate demand, capital accumulation and growth, as well as on medium- to long-run effects on economic and financial stability. Finally, we draw some economic policy conclusions arguing that the only sustainable way out of the contradictions of finance-dominated capitalism is a wage- or mass income-led recovery strategy at regional and global levels.
prof. Eckhard Hein
Professor of Economics, in particular European Economic Policies, at the Berlin School of Economics and Law since 2009. Previously, Senior Researcher at the Macroeconomic Policy Institute (IMK), Hans Böckler Foundation, Düsseldorf, Visiting Professor at the University of Hamburg and Vienna University of Economics and Business Administration, and Adj. Professor at Carl von Ossietzky University Oldenburg. Eckhard Hein is a member of the coordinating committee of the Research Network Macroeconomics and Macroeconomic Policies, a co-editor of the “Series of the Research Network Macroeconomics and Macroeconomic Policies” (Metropolis Publisher), and a managing co-editor of “Intervention. European Journal of Economics and Economic Policies”.