Secular stagnation or stagnation policy? Steindl after Summers
| Autor: | Eckhard Hein |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Full employment
distribution and growth jel:E65 lcsh:Political science Economic stagnation jel:B22 Power (social and political) 0502 economics and business Economics Secular Stagnation Stagnation Policy Distribution and Growth Steindl secular stagnation stagnation policy distribution and growth Steindl Real interest rate 050207 economics Aggregate demand 050208 finance Keynesian economics 05 social sciences lcsh:Economic theory. Demography jel:E11 secular stagnation Capitalism Investment (macroeconomics) jel:E12 stagnation policy lcsh:HB1-3840 jel:O11 B22 E11 E12 E65 O11 Capacity utilization lcsh:J |
| Zdroj: | PSL Quarterly Review, Vol 69, Iss 276, Pp 3-47 (2016) Eckhard Hein |
| ISSN: | 2037-3643 2037-3635 |
| Popis: | The debate on secular stagnation suffers from vagueness and several shortcomings, which affect its economic policy implications. In this work we provide an alternative view on the advanced economies’ tendencies to stagnation, based on Josef Steindl’s contributions. Steindl’s pioneering 1952 book in particular is not prone to several problems that affect the current debate on secular stagnation. It does not rely on the dubious notion of an equilibrium real interest rate as the equilibrating force of saving and investment at full employment levels. Rather, it is based on the notion that modern capitalist economies face aggregate demand constraints, and that saving adjusts to investment through income growth and changes in capacity utilisation in the long run. Steindl’s treatment allows for potential growth to become endogenous to actual demand, and it seriously considers the role of institutions and power relationships for long-run growth. In illustrating Steindl’s contributions on this topic, the article presents an original model synthetizing the main points in particular concerning long run growth and stagnation. JEL codes: B22, E11, E12, E65, O11 PSL Quarterly Review, V. 69, N. 276 (2016): March |
| Databáze: | OpenAIRE |
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