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Full-Text Articles in Social and Behavioral Sciences
Is The Nature Of The Demand Regime Relevant Over The Medium Run? Revisiting Distributional Issues In A Portfolio Framework Under Different Exchange Rate Regimes, Arslan Razmi
Economics Department Working Paper Series
Is growth in capitalist economies wage-led or profit-led? Empirical studies have found conflicting results for different countries and periods. Possible reasons may include the endogeneity of distributional shares, differences in the monetary policy/exchange rate regimes across countries, and divergence between macro behavior in the short- and medium-runs. I theoretically explore these possibilities using a portfolio balance framework to keep track of asset stocks and wealth effects over time. With fixed exchange rates, the Central Bank’s need to intervene in the asset market via official reserve transactions results in assigning a crucial role to the current account in constraining accumulation and …
Growth And Distribution In Low Income Economies: Modifying Post Keynesian Analysis In Light Of Theory And History, Arslan Razmi
Growth And Distribution In Low Income Economies: Modifying Post Keynesian Analysis In Light Of Theory And History, Arslan Razmi
Economics Department Working Paper Series
Growth in low-income developing economies with large sectors characterized by underemployment is unlikely to be wage-led in the traditional neo-Kaleckian sense of the term. Output and employment in the sectors of the economy producing non-tradable output could be demand-led, however, and policies directly aimed at more equitable distribution in these sectors could boost long-run growth. Some of the fast growing Asian economies may have been examples of wage-led growth in this rather different sense of the term. Over time, re-distributive measures in the traditional sector, such as land reforms, could lead to faster wage and output growth across the economy.