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European Tribune - Buying time : Where now for capitalism and democracy? [Part 1]

In the 70s, productive investment started to fall short of what was required for full employment. Inflationary monetary policy was the first ploy to buy time, accommodating wage rises in excess of productivity growth. But the replacement of real growth with nominal growth lost its charm with stagflation in the late 70s, which put a squeeze on profits and threatened to lead to a capital strike.

Does Streeck advance an explanation for that original '70s shortfall of productive investment? I mean, if the stagflation squeeze on profits led to the risk of a "capital strike", it might be said that one capital strike had led to another...

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Aug 15th, 2014 at 12:58:26 PM EST

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