Secular Stagnation or stagnation policy? Steindl after Summers

Schwierigkeit: mittel
Eckhard Hein | IMK, 2015

Perspektive: Post-Keynesian Economics
Thema: Krise, Finanzialisierung
Format: Vorlesung , Dauer: 00:30:53

Eckhard Hein criticises the mainstream's view of secular stagnation as the result of a negative real equilibrium interest rate. Arguing in a Keynesian spirit with particular reference to Steindl, secular stagnation is considered to be a result of shift in the functional income distribution, and oligopolistic organisation of industries, leading to excess capacity and reluctance to invest. This acts as a drag on effective demand and results in secular stagnation. Distributional policies and public investment can, however, overcome stagnation its tendencies.