Financialization and Income Inequality: A Post Keynesian Institutionalist Analysis
AbstractOne of the most troubling developments in recent years has been widening income inequality in the United States and elsewhere. We argue Post Keynesian Institutionalism (PKI) provides insight into the causes of increasing income inequality and our contribution is threefold. First, we compare PKI to the âfinancializationâ literature, noting key similarities and differences. Second, we examine changes in financial structure and income inequality for a sample of developed nations, showing that financialization has increased in nearly all the countries sampled and that this increase has generally been accompanied by a rise in income inequality. Third, we demonstrate that the development of modern financial structures does not preclude an expansive welfare state and egalitarian public policies. Our finding is congruent with Hyman Minsky's conception of PKI, which stressed both that âeconomic systems are not natural systemsâ and that capitalism comes in as many varieties as Heinz has of pickles.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.
Volume (Year): 44 (2010)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.mesharpe.com/mall/results1.asp?acr=jei
financialization; Hyman Minsky; inequality; post Keynesian institutionalism;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Herr, Hansjörg, 2013. "An analytical framework for the Post-Keynesian macroeconomic paradigm," IPE Working Papers 23/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Eckhard Hein, 2013. "Finance-dominated Capitalism and Redistribution of Income: A Kaleckian Perspective," Economics Working Paper Archive wp_746, Levy Economics Institute, The.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ian Winship) or (Chris Nguyen).
If references are entirely missing, you can add them using this form.