Comments on: Income Inequalities, Public Debt And Social Cohesion: A Postkeynesian-Institutional Approach https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/ 15th October to 30th November, 2018 Mon, 09 Jun 2025 12:44:39 +0000 hourly 1 By: Arturo Hermann https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-80 Thu, 29 Nov 2018 14:22:14 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-80 In effect, a turning point for the explosion of public debt and of the financialisation of the economy is constituted by the “inflation targeting” policies of the early 1980s. These were mainly promoted with great fanfare by the “Reagonomics”, which realised a noxious mixture between monetarism and supply side economics. The result was that large public deficits were financed by selling bonds at high interest rates. The negative effects of this turn have been analysed by numerous heterodox economists. And so deleterious was this trend that also the Nobel prized economist Edmund Phelps – who, although belonging to neo-Keynesian stream, cannot be considered as a heterodox economist – underscored how high real interest rates in the US have caused a permanent slump in Europe. And, it can be added, have paved the way for outbreak of the 2008 economic crisis.

]]> By: guglielmo forges davanzati https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-38 Sun, 18 Nov 2018 18:19:01 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-38 In reply to Maria Grazia Criscuolo.

My argument if that the explosion of public debt is mainly due to the increase of the real interest rates. This, in turn, depends on the deflationary effects of increasing income inequalities.

]]> By: guglielmo forges davanzati https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-37 Sun, 18 Nov 2018 18:16:12 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-37 it plays a crucial role and I will approach this issue in the final draft of this paper. My argument is that the explosion of public debt is mainly driven by the increase of the interest rates, which, in turn, also depends on the deflationary effects of increasing income inequalities. Policy implications are not discussed in this draft.

]]> By: Maria Grazia Criscuolo https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-26 Fri, 16 Nov 2018 10:32:50 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-26 What is in your paper the role (in theory and in policy action) of thereal interest rate?

]]> By: guglielmo forges davanzati https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-10 Wed, 17 Oct 2018 20:24:42 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-10 thanks. this is a preliminary draft.

]]> By: Métayer Robbes https://the2008crisistenyearson.weaconferences.net/papers/income-inequalities-public-debt-and-social-cohesion-a-postkeynesian-institutional-approach/#comment-9 Wed, 17 Oct 2018 15:00:28 +0000 http://the2008crisistenyearson.weaconferences.net/?post_type=wea_paper&p=172#comment-9 Très intéressant. Félicitations.

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