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Inequality and aggregate demand

In: Aggregate Demand, Inequality and Instability

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Abstract

This chapter discusses the role that inequality can have on aggregate demand in a static environment. The literature distinguishes between wage-led and profit-led models where the concept of inequality can be included. In the present model, wealth is also considered. Furthermore, the necessity of referring to a dynamic analysis where income distribution and inequality are endogenous variables is put forward.

Suggested Citation

  • ., 2016. "Inequality and aggregate demand," Chapters, in: Aggregate Demand, Inequality and Instability, chapter 4, pages 33-42, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17444_4
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    Cited by:

    1. Marx, Magali & Mojon, Benoît & Velde, François R., 2021. "Why have interest rates fallen far below the return on capital?," Journal of Monetary Economics, Elsevier, vol. 124(S), pages 57-76.
    2. Atanas Pekanov, 2018. "The New View on Fiscal Policy and its Implications for the European Monetary Union," WIFO Working Papers 562, WIFO.
    3. Bilbiie, Florin & Monacelli, Tommas & Perotti, Roberto, 2020. "Stabilization vs. Redistribution: the Optimal Monetary-Fiscal Mix," CEPR Discussion Papers 15199, C.E.P.R. Discussion Papers.
    4. Balamatsias, Pavlos, 2018. "Democracy and government spending," MPRA Paper 84975, University Library of Munich, Germany.
    5. Glick, Reuven, 2020. "r* and the global economy," Journal of International Money and Finance, Elsevier, vol. 102(C).
    6. Drudi, Francesco & Moench, Emanuel & Holthausen, Cornelia & Weber, Pierre-François & Ferrucci, Gianluigi & Setzer, Ralph & Adao, Bernardino & Dées, Stéphane & Alogoskoufis, Spyros & Téllez, Mar Delgad, 2021. "Climate change and monetary policy in the euro area," Occasional Paper Series 271, European Central Bank.

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    Keywords

    Economics and Finance;

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