Workshop on Redistributive Growth, Credit Trends and Financial Stability

Dieser Workshop findet auf Englisch statt.

ECONtribute invites to the Workshop on Redistributive Growth, Credit Trends and Financial Stability.

This workshop is the first event in a six year project studying long-term aggregate trends, funded by a NWO Open Competition grant. During this conference, we will introduce the framing of the research agenda and share views from the literature in short presentations, reviewing specific themes related to the project. The intent is to interpret puzzling long trends related to investment, credit allocation and income inequality for developed countries since 1980.

A key goal is to interpret departures from historical trends, such as the fall in productive credit and interest rates, structural breaks in house & share valuations and rising household leverage. A broad framework is needed to explain the large reallocative and redistributional effects caused by these departures, both on credit demand and supply. A working conjecture is that IT progress leads to a shift to intangible investments, favoring skilled human capital, and to an increase in market power. This shift leads to lower funding needs, reducing interest rates since savings are inelastic. An important component of this is likely a large structural demand for safety.