A decade of speculation. (December 2018)

• Record Type: Journal Article
• Authors: Chandrasekhar, CP; Ghosh, Jayati
• Is Part Of: Economic and labour relations review. Volume 29:Number 4(2018)
• Page Start: 410
• Page End: 427
• Publication Date: 2018-12
• Subjects: Asset markets -- financial fragility -- macroeconomic policy -- private debt -- quantitative easing; Australia -- Economic conditions -- Periodicals; Industrial relations -- Australia -- Periodicals; Economics -- Periodicals; Industrial relations -- Periodicals; 331
• DOI: 10.1177/1035304618812673
• Languages: English
• ISSNs: 1035-3046

Abstract

The power of finance ensured that, other than for an initial fiscal push to salvage financial institutions, monetary measures in the form of quantitative easing, involving the infusion of large volumes of cheap liquidity, were the principal response to the 2008 global financial crisis. The effects of the generalised and prolonged dependence on such measures have been a substantial increase in vulnerability, at the centre of which is a huge build-up of private – especially corporate – debt, and unwarranted and unsustainable asset price inflation in both developed country and 'emerging economy' markets. A consequence of these processes is a massive increase in income and wealth inequality across the world, which limits the level of effective demand and growth. JEL Codes: E44, E52, E58, G01, G15