[H] Effective Demand, Income Distribution and Finance
Coordinators: Engelbert Stockhammer
Kingston University London, UK
The research area analyses economic dynamics through the lens of demand formation, recognising the key role of institutional changes, income distribution and financial structures. It regards growth and employment performance as to a large extent driven by demand developments, with investment expenditures being a key variable to understand the business cycle. These depend on the institutional factors, on income distribution, on the availability of finance and on business psychology and cannot be reduced to rational optimising behaviour. Social conflict, institutions, money endogeneity and the distribution of income play a key role for understanding consumption behaviour and inflation. In a monetary production economy money and financial structures are never neutral and will impact economic performance.
The research area is developed in cooperation with the Post-Keynesian Economics Study Group (PKSG). It aims to improve communication and collaboration among the existing national post-Keynesian networks and to foster debate between post-Keynesians and other heterodox approaches. We encourage submissions on issues of macroeconomic analysis and business cycle theory, demand formation, the role of uncertainty in economics, the determinants and effects on investment, the effects of credit and wealth, stock flow-consistent modelling, the economic impact of income distribution, the macroeconomic implications of financial institutional structures, determinants of unemployment and analyses of the impact of government policies.
The RA maintains a webpage with more information.