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From The Crisis Of Distribution To The Distribution Of The Costs Of The Crisis: What Can We Learn From Previous Crises About The Effects Of The Financial Crisis On Labor Share?, Özlem Onaran
PERI Working Papers
The paper analyzes the possible distributional consequences of the global crisis based on the lessons of the past crises experiences. The decline in the labor share across the globe has been a major factor that led to the current global crisis. What we are going through is a crisis of distribution, and similarly the policy reactions to the crisis are part of a distributional struggle. The paper presents the effects of the former crises in the developing countries and in Japan on income distribution, wages, and unemployment. This comparison is important not only because it compares developing vs. developed country …
Japanese Growth And Stagnation: A Keynesian Perspective, Takeshi Nakatani, Peter Skott
Japanese Growth And Stagnation: A Keynesian Perspective, Takeshi Nakatani, Peter Skott
Economics Department Working Paper Series
This paper uses a modified Harrodian model to understand both the long period of rapid Japanese growth and the recent period of stagnation. The model has multiple steady-growth solutions when the labour supply is highly elastic, and government intervention, we argue, took the Japanese economy onto a high-growth trajectory. Labour constraints began to appear around 1970, and a combination of high saving rates and slow population growth account for the stagnation of the 1990s. This combination produces a structural liquidity trap and threatens the sustainability of attempts to ensure near full employment through …fiscal policy or by running a persistent …