Abstract
This chapter will argue that government policy has caused the economic problems of OECD countries; that OECD governments were mistaken in restraining the growth of private and public consumption while boosting the growth of capital formation; and that these policies had the perverse effect of curtailing productivity growth. Governments justified their policies in terms of the need to fight inflation in order to restore the potential for economic growth. This chapter will argue that the reduced potential for growth is a self-inflicted and self-perpetuating wound.
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Notes
C. P. Kindleberger, ‘Reversible and Irreversible Processes in Economics’, Challenge, September—October 1986.
A. Tarasofsky, T. G. Roseman and H. E. Waslander. ‘Ex Post Aggregate Real Rates of Return in Canada, 1947–1976’, Economic Council of Canada, 1981
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© 1995 the Jerome Levy Economics Institute
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Gigantes, T. (1995). Economic Growth and the Distribution of Income. In: Harcourt, G., Roncaglia, A., Rowley, R. (eds) Income and Employment in Theory and Practice. The Jerome Levy Economics Institute Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23705-0_13
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DOI: https://doi.org/10.1007/978-1-349-23705-0_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-23707-4
Online ISBN: 978-1-349-23705-0
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