Open AccessBeyond Goodwin: Financialization as a structural change to explain the new Argentinian crisis
Author(s) -
Pablo Ignacio Chena,
Demian Tupac Panigo,
Germán Zorba
Publication year - 2020
Publication title -
cuadernos de economía
Language(s) - English
Resource type - Journals
eISSN - 2248-4337
pISSN - 0121-4772
DOI - 10.15446/cuad.econ.v39n80.84163
Subject(s) - stylized fact , economics , financialization , volatility (finance) , financial crisis , recession , current account , monetary economics , wage , keynesian economics , labour economics , market economy , econometrics , exchange rate
This paper aims to explain the causes of the 2018/2019 Argentinian crisis by means of a growth cycle model a la Goodwin, where the aggregate demand is wage-led, the wage-share is predatory of the external sector, and the financial norm stands as an exogenous apex-predator of both real wages and the current account. Its main results allow us to understand the stylized facts of the Argentinian economy: a higher financial norm increases inequality and required current account surpluses, reduces stability, and increases volatility and recessions length.