Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-Email: engelbert.stockhammer@wu-wien.ac.at
Author-Workplace-Name: Dept. of Economics, VW1, Wirtschaftuniversität Wien, Augasse 2-6, A 1090 Wien, Austria.
Title: The finance-dominated accumulation regime, income distribution and the present crisis
Abstract: The paper discusses the interactions of changes in income distribution and the accumulation dynamics in the post-Fordist accumulation regime in 
	OECD countries, which is characterized by deregulated financial markets. The neoliberal mode of regulation came with a decisive shift in power 
	relations at the expense of labor, which is clearly reflected in the fall of wage shares across OECD economies. The notion of a “finance-dominated” 
	accumulation regime is proposed to highlight that financial developments crucially shape the pattern and the pace of accumulation. Financial 
	globalization has relaxed balance of payment constraints and thereby allowed the build up of big international imbalances. The combination of real 
	wage moderation and financial liberalization has led to different strategies (or at least outcomes) in different countries. While some countries 
	(like the USA) exhibit a credit-fuelled consumption-driven growth model that comes with large current account deficits, others (like Germany and 
	Japan) show an export-driven growth model with modest consumption growth and large current account surpluses. Overall the financedominated 
	accumulation regime is characterized by a mediocre growth performance and by a high degree of fragility.
Classification-JEL: B50, E20, E21, E29, E44, E60, P17.
Keywords: Financialization; Finance-dominated accumulation regime; Macroeconomics consumption; Investment; Financial system; Financial stability; 
	Income distribution; Debt-led growth; Export-led growth.
Journal: Papeles de Europa
Pages: 58-81
Volume: 19
Year: 2009
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/padeur09-19(58-81).txt
File-URL: https://eprints.ucm.es/id/eprint/68220/1/2009-19(58-81).pdf
File-Format: Application/pdf
Handle: RePEc:ucm:padeur:v:19:y:2009:p:58-81