Economic stagnation in the United States: underlying causes and global consequences

Blecker, Robert A.

doi:10.1590/s0101-31572014000400011

Cited by 2 publications

(1 citation statement)

References 18 publications

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“…Worse, since the rise in the household saving rate has been caused by the uneven impacts of COVID-19 on some of the service sectors where workers are paid poorly, the slumped period of aggregate demand could be prolonged. Furthermore, since suppliers in service industries tend to slowly respond to a rise in demand, we are likely to see a more sluggish recovery of demand (Olney and Pacitti, 2017;Blecker, 2014).…”

Section: Households' Consumption and Saving Behaviormentioning

confidence: 99%

The Macroeconomic Implications of the Covid-19 Economic Crisis: The Case of South Korea

Yoon

2021

Investigación Económica

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This paper examines the major impacts of COVID-19 on the Korean economy throughout 2020. Since the start of the pandemic, sectoral unevenness of growth, employment inequality, and corporate liquidity preferences have been accelerated. These patterns reflect a continuation of trends that have been developed since the 1997 Asian crisis. As the main approach in examining the economic effects of the COVID-19 crisis and the government policy implemented to cope with them, I focus on the unequal distribution of output and employment shocks across businesses, workers, and households, through which I derive the macroeconomic implications of the pandemic crisis for the Korean economy. Throughout 2020, South Korea has been witnessing income redistribution favorable to big corporations and banks and away from small businesses, non-standard workers, and low-income households. These widening disparities have important macroeconomic implications.

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Section: Households' Consumption and Saving Behaviormentioning

confidence: 99%

The Macroeconomic Implications of the Covid-19 Economic Crisis: The Case of South Korea

Yoon

2021

Investigación Económica

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The US economy since the crisis: slow recovery and secular stagnation*

Blecker

2016

European Journal of Economics and Economic Policies: Intervention

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The US economy has experienced a slowdown in its long-term growth and job creation that predates the Great Recession. The stagnation of output growth stems mainly from the depressing effects of rising inequality on aggregate demand, while both increased inequality and the delinkage of employment from output have their roots in profound structural changes to the US industrial structure and international position. Stagnation tendencies were temporarily offset by debt-financed household spending before the financial crisis, after which households became more financially constrained. Meanwhile, fiscal policy has shifted toward austerity while business investment has failed to keep up with the boom in corporate profits in spite of low interest rates. Slower US growth in turn exacerbates the global slowdown as it implies smaller injections of demand into global export markets.

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Economic stagnation in the United States: underlying causes and global consequences

Cited by 2 publications

References 18 publications

The Macroeconomic Implications of the Covid-19 Economic Crisis: The Case of South Korea

The Macroeconomic Implications of the Covid-19 Economic Crisis: The Case of South Korea

The US economy since the crisis: slow recovery and secular stagnation*

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