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Foreign debt, conflicting claims and income policies in a Kaleckian model of growth and distribution

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  • Bortz Pablo Gabriel

    (Universidad Nacional de San Martín, CEED-IDAES, Ciudad Autónoma de Buenos Aires, Buenos Aires, Argentina)

  • Michelena Gabriel

    (Universidad de Buenos Aires, Ciudad Autónoma de Buenos Aires, Buenos Aires, Argentina)

  • Toledo Fernando

    (Universidad Nacional de San Martin, IDAES, Buenos Aires, Ciudad Autónoma de Buenos Aires, Argentina)

Abstract

The paper develops a Kaleckian model of growth with endogenous income distribution, determined by conflicting claims on income shares. The article analyzes different demand, distribution and debt regimes, with external debt playing a differential role according to its impact on the exchange rate and on debt-servicing. We further study the impact of a tax-based income policy on the exchange-rate pass-through and external competitiveness. We find that the threat of taxation (or subsidies) can serve as an instrument to coordinate income claims, lower inflationary pressures and improve external price competitiveness.

Suggested Citation

  • Bortz Pablo Gabriel & Michelena Gabriel & Toledo Fernando, 2018. "Foreign debt, conflicting claims and income policies in a Kaleckian model of growth and distribution," Journal of Globalization and Development, De Gruyter, vol. 9(1), pages 1-22, June.
    • Handle: RePEc:bpj:globdv:v:9:y:2018:i:1:p:22:n:3
    DOI: 10.1515/jgd-2018-0004
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    1. Karsten Kohler & Engelbert Stockhammer, 2023. "Flexible exchange rates in emerging markets: shock absorbers or drivers of endogenous cycles?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(2), pages 551-572.

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