Demand and growth regimes in finance-dominated capitalism and a progressive equality-, sustainability- and domestic demand-led alternative - A post-Keynesian simulation approach
June 25, 2023
Our paper on Demand and growth regimes in finance-dominated capitalism and a progressive equality-, sustainability- and domestic demand-led alternative - A post-Keynesian simulation approach has been published in the PSL Quarterly Review. This is joint work with Alessandro Bramucci and Eckhard Hein.
In the paper, we make use of a post-Keynesian/Kaleckian two-country stock-flow consistent (SFC) simulation model, to 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.