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Journal of Globalization and Development

Ed. by Stiglitz, Joseph / Emran, M. Shahe / Guzman, Martin / Jayadev, Arjun / Ocampo, José Antonio / Rodrik, Dani

CiteScore 2018: 0.50

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Foreign debt, conflicting claims and income policies in a Kaleckian model of growth and distribution

Pablo Gabriel Bortz
  • Corresponding author
  • Universidad Nacional de San Martín, CEED-IDAES, Ciudad Autónoma de Buenos Aires, Buenos Aires, Argentina
  • Consejo Nacional de Investigaciones Cientificas y Tecnicas, Buenos Aires, Argentina
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  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Gabriel Michelena / Fernando Toledo
  • Universidad Nacional de San Martin, IDAES, Buenos Aires, Ciudad Autónoma de Buenos Aires, Argentina
  • Universidad Nacional de la Plata, Facultad de Ciencias Económicas, La Plata, Buenos Aires, Argentina
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Published Online: 2018-09-08 | DOI: https://doi.org/10.1515/jgd-2018-0004


The paper develops a Kaleckian model of growth with endogenous income distribution, determined by conflicting claims on income shares. The article analyzes different demand, distribution and debt regimes, with external debt playing a differential role according to its impact on the exchange rate and on debt-servicing. We further study the impact of a tax-based income policy on the exchange-rate pass-through and external competitiveness. We find that the threat of taxation (or subsidies) can serve as an instrument to coordinate income claims, lower inflationary pressures and improve external price competitiveness.

Keywords: Foreign debt; Global risk perceptions; Income claims; International financial flows; Kaleckian models of growth and distribution


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Published Online: 2018-09-08

Citation Information: Journal of Globalization and Development, Volume 9, Issue 1, 20180004, ISSN (Online) 1948-1837, DOI: https://doi.org/10.1515/jgd-2018-0004.

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