International Competition and Distributive Class Conflict in an Open Economy K aleckian Model
Year: 2013
Type: article
Abstract: This paper constructs an open economy Kaleckian model in which international competition affects the bargaining process between firms and workers, and investigates the effects of such bargaining on the macroeconomy. We show that the effects of a change in the bargaining power on aggregate demand depends not only on the demand regimes but also on which agents bears more of the burden arising from the international price competition. Moreover, if the real exchange rate has a small impact on the trade balance, the economy is stable, whereas if it has a larger impact on the trade balance, the economy is unstable.
Source: Metroeconomica
DOI: 10.1111/meca.12030
Institutions: Kyoto University, Saga University, Nagoya University
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2149807153