La crisi americana: appunti di viaggio
AbstractThis paper comments an invited opinion on the American crisis in the New York Times by Professor Casey Mulligan, University of Chicago. Accord-ing to Mulligan, the crisis is no more than a financial fluctuation, banks should not be bailed out, other financial actors can finance business in-vestments, the delay of investment and consumption is non a big problem, public intervention is unhelpful. This paper argues instead that the current crisis is not mainly of a financial nature, but it originates form a sustained shock that affected income distribution. The share of labour declined, while the share of capital increased. To sustain the returns to capital it was neces-sary to force lending to consumers. In the short term both monetary and fis-cal policy are needed, but in the mid-to-long run it is necessary to go back to a more balanced income distribution.
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Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2009-10.
Date of creation: 23 Mar 2009
Date of revision:
Financial and economic crisis; Banks bail-out; Income distribution;
Find related papers by JEL classification:
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
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