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Neo-Kaleckian models with financial cycles: A center-periphery framework

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  • David Guimarães Coelho
  • Esteban Perez Caldentey

Abstract

The article develops a Neo-Kaleckian model that takes into account the impact of financial cycles on demand regimes. Both the financial instability hypothesis and the paradox of debt are considered, as well as both the upward and the downward phases of the economic cycle. The baseline model is insufficient to analyze financial variables in underdeveloped countries, as it does not take into consideration the non-neutrality of international financial markets. Following a center-periphery structure, we extend the model in order to discuss how financial movements in the periphery are mainly associated with external vulnerability.

Suggested Citation

  • David Guimarães Coelho & Esteban Perez Caldentey, 2018. "Neo-Kaleckian models with financial cycles: A center-periphery framework," PSL Quarterly Review, Economia civile, vol. 71(286), pages 309-326.
    • Handle: RePEc:psl:pslqrr:2018:33
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    File URL: https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/14431/14083
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    References listed on IDEAS

    as
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    5. Sheila C. Dow, 1993. "Money And The Economic Process," Books, Edward Elgar Publishing, number 147.
    6. Gilberto Tadeu Lima, 2004. "Endogenous Technological Innovation, Capital Accumulation And Distributional Dynamics," Metroeconomica, Wiley Blackwell, vol. 55(4), pages 386-408, November.
    7. Marc Lavoie & Stockhammer Engelbert, 2013. "Wage-Led Growth: An Equitable Strategy for Economic Recovery," Post-Print hal-01343664, HAL.
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    Cited by:

    1. Darrin Downes & Tarron Khemraj, 2019. "Foreign Exchange Pressure in Barbados: Monetary Approach or Monetary Dependence?," Review of Political Economy, Taylor & Francis Journals, vol. 31(2), pages 159-177, April.
    2. Akcay, Ümit & Hein, Eckhard & Jungmann, Benjamin, 2021. "Financialisation and macroeconomic regimes in emerging capitalist economies before and after the Great Recession," IPE Working Papers 158/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).

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    More about this item

    Keywords

    Minsky cycles; Neo-Kaleckian model; paradox of debt; center-periphery;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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