%0 Journal Article
%T Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model
%A Eckhard Hein
%J PSL Quarterly Review
%D 2012
%I Associazione Paolo Sylos Labini
%X In a Kaleckian distribution and growth model with workers¡¯ debt we examine the short and long run effects of three stylized facts of ¡°finance-dominated capitalism¡±: a fall in animal spirits of the firm sector with respect to real investment in capital stock, re-distribution of income at the expense of the wage share, and increasing lending of rentiers to workers for consumption purposes. In particular, we specify the conditions for long-run stability of the workers¡¯ debt-capital ratio. We thus identify the threshold for this ratio to turn unstable causing increasing financial fragility and finally financial crisis due to systemic stock-flow or stock-stock dynamics.
%K Finance-dominated capitalism
%K distribution
%K household debt
%K financial fragility
%K growth
%K Kaleckian model
%U http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9937/9820