One of the main consequences of global economic crisis of 2008 and the Euro-zone crisis of 2009 is that some dominating paradigms of neoclassical economics such as pure market economics and supply side economic growth have been questioned. This paper reviews the theoretical contributions of Post Keynesian literature to the issue of distribution-growth nexus. Furthermore, this article discusses economic policy proposals and analyses developed by Post Keynesian models based on neo-Kaleckian theoretical foundations. In contrast to neo-classical theory, neo-Kaleckian models have very strong political economy implications and distributional policy (egalitarian or unequal) has a profound impact on economic growth. Neo-Kaleckian models suggest that rising income inequalities produced by neo-liberal policies may generate insufficient level of aggregate demand, leading to slow economic growth in a wage-led demand and growth regime.
Key words: Income Distribution, Economic Growth, Neo-Kaleckian Models. JEL Classification: E12, E20, O15, O40, O49. Article Language: EnglishTurkish
|
