Chapter Five: Financialization and stagnation—a macroeconomic regime perspective ∗
Eckhard Hein
Institute for International Political Economy (IPE), Berlin School of Economics and Law, Berlin, Germany
Abstract
In this contribution, we link the recently rediscovered tendencies toward stagnation with the features of financialization, which have started to dominate developed capitalist economies in the early 1980s. We review the main macroeconomic channels of transmission of financialization—namely, the effects on distribution, investment in the capital stock, consumption and on the current and capital accounts. We distinguish three regimes, the debt-led private demand boom, the export-led mercantilist, and the domestic demand-led ...
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