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From over-investment to Households' Over-Indebtedness

Author

Listed:
  • Bailly, Jean-Luc

    (Université du Borgogne)

Abstract

The macroeconomic foundations of the crisis are in what the amortization of fixed capital causes an over-investment that comes to burden the profitability of capital engaged in production. In this paper we argue that far from compensating for the effects of overinvestment, the pressure on wages and the expansion of consumer credit contribute to the start of the financial crisis. MOTS-CLÉS : amortissement, coût d'usage, financiarisation, surendettement, surinvestissement.

Suggested Citation

  • Bailly, Jean-Luc, 2010. "From over-investment to Households' Over-Indebtedness," European Journal of Economic and Social Systems, Lavoisier, vol. 23(1), pages 63-80.
  • Handle: RePEc:ris:ejessy:0043
    as

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    More about this item

    Keywords

    Amortization; Excessive Debt; Financialization; Over-Investment; User Cost;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G01 - Financial Economics - - General - - - Financial Crises

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