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Revista de Economía Institucional
versão impressa ISSN 0124-5996
Resumo
PALLEY, Thomas I.. Inequality, the financial crisis and stagnation: competing stories and why they matter. Rev.econ.inst. [online]. 2016, vol.18, n.34, pp.45-68. ISSN 0124-5996. https://doi.org/10.18601/01245996.v18n34.05.
This paper examines some conventional explanations of the financial crisis and stagnation, and the role attributed to income inequality, in contrast with a structural Keynesian explanation. The role of income inequality differs essentially and leads to different policy which forms recommendations. This highlights the importance of economic theory, which forms our understanding of the world and therefore our reactions. The theoretical narrative that implicitly shapes policy. And this necessarily applies to the issue of income inequality, the financial crisis and stagnation.
Palavras-chave : Income inequality, financial crisis, stagnation, economic theory; JEL: E00, E02, E10, E20, E24.