Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277535 
Year of Publication: 
2022
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 19 [Issue:] 1 [Year:] 2022 [Pages:] 61-88
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
The debate about monetary growth imperatives centres around the question of whether a zero-growth economy is compatible with positive interest rates. An aspect that is mostly disregarded in this debate is under which circumstances a zero-growth economy can be accompanied by a reduction in wealth inequality, which is a prerequisite for the latter to be politically feasible. The paper analyses this question using a stock–flow consistent macro model including multiple households with heterogeneous wealth levels and a non-linear, concave consumption function. The results show an example of theoretical conditions under which wealth inequality is reduced in a zero-growth economy. However, the conditions for stability of the zero-growth trajectory are found to be more restrictive in the case of a non-linear consumption function compared to the linear case.
Subjects: 
inequality
ecological macroeconomics
zero growth
growth imperativeD31
Q01
O44
E12
E21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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