imbalances in the world economy associated with finance-dominated capitalism. From this it follows that in the near and not so … near future, the US will no longer be able to act as the driving force for world demand. In order to avoid a period of … deflationary stagnation in major parts of the world economy, we finally propose the policy package of a Global Keynesian New Deal …

-abundant countries into the world economy. With flexible wages, a negative supply shock leads to a decrease in the wage rate while … employment remains constant. With a rigid wage rate, a rise in unemployment of unskilled labour follows. The model explains the …