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Current Problems of Secular Stagnation from a Global Perspective

Özlem Onaran
IMK, 2015
Grado: adelantado
Perspective: Economía poskeynesiana
Topic: Desigualdad y clase, Dinero y deuda
Format: Ponencia
Duración: 00:35:37

Özlem Onaran analyses the current problems of secular stagnation from a global perspective. At the core of global economic problems is insufficient demand caused by falling wage shares, because most individual countries, and the world as a whole are “wage-led”. Hence a strategy for global growth is to aim at increasing wages and thus the wage share, and the abandonment of policies focusing purely on national competitiveness. Financialization has broken the link between corporate profitability and investment. Reregulation of finance and higher public investment is required in order to crowd in private investment, in this way, reversing the declining trend of potential output growth.

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