Inequality, Financialisation & Crisis in European capitalism
On Monday, December 14th 2015, Prof. Englebert Stockhammer held a lecture titled “Inequality, Financialisation & crisis in European capitalism”.
In recent decades, a joint increase in both inequality and rapid growth of financial transactions was noticeable; this can be characterized as a dangerous combination. Rising inequality has contributed to financialisation and dampens aggregate demand. Financialisation leads to a faster increase of top incomes, faster than the rest of the economy. Even though this model lead to one of the worst economic crises since the Great Depression of the 1930s, economic policy has not changed significantly. Prof Stockhammer applies Post-Keynesian theory to analyze the nexus between inequality and financialisation.
Personal details: Prof. Stockhammer teaches and researches at Kingston University London and is visiting professor at WU. He is one of the leading Post-Keynesian economists, and among other positions, he is chair of the Post-Keynesian Economics Study Group (PSKG). RePEc lists him within the top five percent of economists worldwide. He is a member of the Economic Advisory Council of Podemos, editor of wage-led growth (with Marc Lavoie) and author of more than 50 articles in journals.