Functional distribution of income, aggregate demand, and economic growth in the Chinese economy, 1978–2007

2015 ◽  
Vol 29 (4) ◽  
pp. 435-454 ◽  
Author(s):  
Ricardo Molero-Simarro
Keyword(s):  
Economic Growth ◽  
Aggregate Demand ◽  
Chinese Economy ◽  
Functional Distribution ◽  
Distribution Of Income

scholarly journals An assessment of the debates over income distribution and growth in the Neo-Kaleckian literature

2021 ◽  
Vol 41 (4) ◽  
pp. 782-796
Author(s):  
SULAFA NOFAL
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Income Distribution ◽  
Aggregate Demand ◽  
Economic Thought ◽  
Theoretical Discussion ◽  
Distributional Effects ◽  
Economic Issues ◽  
The Impact ◽  
Distribution Of Income

ABSTRACT Kaleckian literature is considered an important theme in the post-Keynesian school of economic thought. In the aftermath of the financial crisis, the endeavors of forming a new consensus regarding essential economic issues, in particular achieving economic growth became a need. Thus, the Kaleckian models returned to be in the spot since these models tackle the impact of changes in the distribution of income and address the question whether a redistribution of income away from wages and towards profits is capable of boosting growth. In this sense, this paper return to Kaleckian insights and offers a theoretical discussion of the distributional effects on aggregate demand and economic growth. Moreover, through the lens of neo-Kaleckian tradition, the evolution of the debate on wage-led and profit-led regimes in recent decades can be traced.

scholarly journals COVID-19 Pandemic, Sustainability of Macroeconomy, and Choice of Monetary Policy Targets: A NK-DSGE Analysis Based on China

2021 ◽  
Vol 13 (6) ◽  
pp. 3362
Author(s):  
Xinping Zhang ◽  
Yimeng Zhang ◽  
Yunchan Zhu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Social Inequality ◽  
Aggregate Demand ◽  
Labor Demand ◽  
Chinese Economy ◽  
Policy Implications ◽  
Dynamic Stochastic ◽  
The Impact ◽  
Policy Targets

This paper studies the impact of the COVID-19 pandemic on the sustainability of Chinese economic growth, government debt, and income inequality by constructing a new Keynesian dynamic stochastic general equilibrium (NK-DSGE) model. The choice of monetary policy targets is then analyzed to hedge the impact of the pandemic. We find that: (1) the aggregate demand and labor demand shocks caused by the COVID-19 pandemic posed serious challenges to the sustainable development of the economy and debt, and increased social inequality; (2) when the impact of the pandemic is mainly reflected in the recession in aggregate demand, monetary policy should pay more attention to the target of price stability; (3) when the impact of the pandemic is mainly reflected in a decline in labor demand, monetary policy should focus more on the target of economic growth; (4) when the pandemic has a significant impact on both aggregate demand and labor demand, a monetary policy which focuses more on the target of economic growth is conducive to minimizing welfare losses. Targeted policy implications, such as selecting monetary policy targets according to different manifestations of the impact of the COVID-19 pandemic and placing emphasis on monetary policy tools to stimulate consumption, alleviate unemployment, and alleviate social inequality, are suggested to improve the sustainability of the Chinese economy.

Lectures in Macroeconomics

2019 ◽  
Author(s):  
Kazimierz Łaski
Keyword(s):  
Economic Growth ◽  
World War Ii ◽  
Aggregate Demand ◽  
Policy Implications ◽  
Total Output ◽  
World War ◽  
The Government ◽  
Main Components ◽  
Distribution Of Income

These lectures in macroeconomics explain the theory and policy implications of macroeconomics in a systematic and logically consistent way. Central to this analysis is the principle of aggregate demand as formulated by the Polish economist Michał Kalecki, who is best known as the originator, along with Keynes, of the Keynesian Revolution in macroeconomics. The lectures cover the main components of aggregate demand, showing the key importance of firms’ investment for total output, employment, and economic growth in both closed and open economies. The main influences on investment are explained and how, through the circular flow of income and expenditure, investment generates profits in the economy. However, investment is unstable and the government therefore has a central role in stabilizing such an economy at high rates of employment. Along with investment, the labor market and wages then determine the distribution of income. This leads on to an examination of the role of money and finance in the contemporary capitalist economy. The analysis is illustrated with statistics and a survey of the evolution of capitalist economies since World War II, along with critical observations on the neoclassical approach to economics.

Inclusive Growth with Zakat

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 997-1010
Author(s):  
Muhammad Mazhar Iqbal
Keyword(s):  
Economic Growth ◽  
Aggregate Demand ◽  
Economic Consequences ◽  
Poor People ◽  
Kuznets Curve ◽  
Inclusive Growth ◽  
Marginal Productivity ◽  
The Social

Zakat is an annual religious levy that is collected from rich Muslims and its proceeds are disbursed among poor people of the society. It has many spiritual and social merits. For example, it purifies the hearts of zakat-givers as they give away a part of their wealth, one of the most precious things in their lives, seeking the pleasure of God without requiring any worldly gains whatsoever. It bridges the social gap between „haves‟ and „have-nots.‟ This study analyses, however, only economic consequences of Zakat for economic growth. They cannot be appreciated duly unless one understands the following concepts of modern economics; various theories of consumption, aggregate demand, stagnation thesis, consumption puzzle, marginal productivity of capital and Kuznets curve.

Theorizing About Post-Keynesian Economics in Australasa

2013 ◽  
pp. 411-435
Author(s):  
Paul Dalziel ◽  
J. W. Nevile
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Monetary Policy ◽  
World War Ii ◽  
Fiscal Policy ◽  
Aggregate Demand ◽  
World War ◽  
Keynesian Economics ◽  
Low Levels ◽  
Monetary And Fiscal Policy

There was much in common in the development of post-Keynesian economics in Australia and New Zealand, but there were also many differences. Both countries shared a common heritage in higher education. In the first twenty-five years after World War II, both countries adopted broadly Keynesian policies and experienced very low levels of unemployment. Increasingly over these years more theorizing about macroeconomic policy had what now would be called a post-Keynesian content, but this label was not used till after the event. In both countries, apart from one important factor, the experience of actual monetary policy and theorizing about it were similar. Keynesian ideas were more rapidly adopted in Australia than in many other countries. Not surprisingly for a couple of decades after 1936, analysis of policy and its application was Keynesian rather than post-Keynesian, with fiscal policy playing the major role. The conduct of both monetary and fiscal policy depends on the theory of inflation. This chapter examines post-Keynesian economics in Australasia, focusing on aggregate demand, economic growth, and income distribution policy.

Status and Prospects of Economic Development in East Asia

2014 ◽  
pp. 42-52
Author(s):  
M. Potapov
Keyword(s):  
Economic Growth ◽  
East Asia ◽  
Industrial Development ◽  
Free Trade Area ◽  
Chinese Economy ◽  
Domestic Investment ◽  
Trade Area ◽  
Structural Problems ◽  
East Asia Region ◽  
Post Industrial

The East Asia region had survived the global economic crisis of 2008–2009. However, the general slowdown in the region indicates many structural problems. The Chinese economy actively switches to the domestic market, giving priority to domestic investment and consumer demand in the maintenance of the economic growth. The development of integration processes in East Asia leaves open the question of the formation of a region-wide free trade area. East Asia is capable to retain the role of economic growth locomotive, moving towards the level of post-industrial development.

scholarly journals The great Chinese transformation: cynicism and the future of the world (article two)

2020 ◽  
Vol 2020 (3) ◽  
pp. 5-23
Author(s):  
Grzegorz W. Kolodko ◽  
Keyword(s):  
United States ◽  
Economic Growth ◽  
The United States ◽  
Chinese Economy ◽  
The Past ◽  
Chinese Characteristics ◽  
The World ◽  
The Future ◽  
The Right ◽  
Supranational Level

The huge leap made by the Chinese economy over the past four decades as a result of market reforms and openness to the world is causing fear in some and anxiety in others. Questions arise as to whether China’s economic success is solid and whether economic growth will be followed by political expansion. China makes extensive use of globalization and is therefore interested in continuing it. At the same time, China wants to give it new features and specific Chinese characteristics. This is met with reluctance by the current global hegemon, the United States, all the more so as there are fears that China may promote its original political and economic system, "cynicism", abroad. However, the world is still big enough to accommodate us all. Potentially, not necessarily. For this to happen, we need the right policies, which in the future must also include better coordination at the supranational level.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

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