Demand and growth regimes in finance-dominated capitalism and a progressive equality-, sustainability- and domestic demand-led alternative
A post-Keynesian simulation approach
DOI:
https://doi.org/10.13133/2037-3643/18211Keywords:
post-Keynesian macroeconomics, financialisation, growth regimes, inequality, debt, social capitalism, stock-flow consistent modelAbstract
Making use of a post-Keynesian/Kaleckian two-country stock-flow consistent (SFC) simulation model, we shed light on different regimes in modern finance-dominated capitalism, their interaction at the global scale, and then on the changes in regimes after the 2007-09 crises. Most importantly, we present the main features of a progressive and more stable equality-, sustainability- and domestic demand-led regime. We show that the main features of such a regime will have to focus on a ‘reformed capitalism’ with regulated finance, a more equal distribution of income and active government fiscal policies, as guide posts for progressive social democracy.
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