[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/vrs/joinma/v7y2015i2p165-179n11.html
   My bibliography  Save this article

The Realities and Illusions of the XXIst Century Social Contract

Author

Listed:
  • Wolnicki Miron

    (Villanova University, USA)

  • Piasecki Ryszard

    (University of Lodz)

Abstract
Purpose – The paper aims to clarify the relationship between the rise of the sovereign debt in the G20 and the relative underpayment of labor versus capital.Design/methodology/approach – The historic analysis of successes and failures of demand management in the leading market economies. Provide data to support and illustrate the claims made in the paper.Findings – The argument presented in the paper is that the root cause of the rapidly rising sovereign debt lies in the demand deficiency originating in the cumulative effect of lagging labor compensation relative to productivity gains. Developed market democracies desperately need policies to mend the failing social contract between labor and capital. The real solution of the debt is to address demand deficiency, increase labor participation and wages, or basically, introduce a new social contract between labor and capital.Research limitations/implications – The detailed analysis of demand management policies would have to be country specific which goes beyond the scope of the paper.Practical implications – The paper implies that G20 policies go into a wrong direction and increase the risk of chain debt defaults in the leading market economies.Originality/value – This paper fulfils an identified need to study the root cause of the demand deficiency syndrome and the need to introduce long term policies needed to restore growth in the market economies.

Suggested Citation

  • Wolnicki Miron & Piasecki Ryszard, 2015. "The Realities and Illusions of the XXIst Century Social Contract," Journal of Intercultural Management, Sciendo, vol. 7(2), pages 165-179, June.
    • Handle: RePEc:vrs:joinma:v:7:y:2015:i:2:p:165-179:n:11
    DOI: 10.1515/joim-2015-0017
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/joim-2015-0017
    Download Restriction: no
    File URL: https://libkey.io/10.1515/joim-2015-0017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ansgar Belke & Florian Verheyen, 2014. "The Low-Interest-Rate Environment, Global Liquidity Spillovers and Challenges for Monetary Policy Ahead," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(2), pages 313-334, June.
    2. Duncan Foley, 2014. "Varieties of Keynesianism," International Journal of Political Economy, Taylor & Francis Journals, vol. 43(1), pages 4-19.
    3. Galina Hale & Peter Jones & Mark M. Spiegel, 2014. "The Rise in Home Currency Issuance," Working Paper Series 2014-19, Federal Reserve Bank of San Francisco.
    4. Jürgen Hagen, 2010. "Sticking to fiscal plans: the role of institutions," Public Choice, Springer, vol. 144(3), pages 487-503, September.
    5. Benabou, Roland, 2005. "Inequality, Technology and the Social Contract," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 25, pages 1595-1638, Elsevier.
    6. International Monetary Fund, 1996. "Budget Processes and Commitment to Fiscal Discipline," IMF Working Papers 1996/078, International Monetary Fund.
    7. Christoph Trebesch & Mr. Michael G. Papaioannou & Mr. Udaibir S Das, 2012. "Sovereign Debt Restructurings 1950-2010: Literature Survey, Data, and Stylized Facts," IMF Working Papers 2012/203, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Mr. Roel M. W. J. Beetsma & Mr. Xavier Debrun & Mr. Franc Klaassen, 2001. "Is Fiscal Policy Coordination in EMU Desirable?," IMF Working Papers 2001/178, International Monetary Fund.
    3. Cronin, David & McQuinn, Kieran, 2021. "Are official forecasts of output growth in the EU still biased?," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 337-349.
    4. Michał Mackiewicz, 2006. "Przyczyny deficytu finansów publicznych w świetle nowej ekonomii politycznej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 1-22.
    5. Yläoutinen, Sami, 2004. "The role of electoral and party systems in the development of fiscal institutions in the Central and Eastern European countries," ZEI Working Papers B 13-2004, University of Bonn, ZEI - Center for European Integration Studies.
    6. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    7. Ricardo Sabbadini, 2018. "International Reserves Management in a Model of Partial Sovereign Default," Working Papers, Department of Economics 2018_14, University of São Paulo (FEA-USP).
    8. María Lorena Marí Del Cristo & Marta Gómez-Puig, 2013. "Fiscal dynamics in a dollarized, oil-exporting country: Ecuador," Working Papers 13-06, Asociación Española de Economía y Finanzas Internacionales.
    9. Bradley, Michael & De Lira Salvatierra, Irving & Gulati, Mitu, 2014. "Lawyers: Gatekeepers of the sovereign debt market?," International Review of Law and Economics, Elsevier, vol. 38(S), pages 150-168.
    10. Chuck Fang & Julian Schumacher & Christoph Trebesch, 2021. "Restructuring Sovereign Bonds: Holdouts, Haircuts and the Effectiveness of CACs," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(1), pages 155-196, March.
    11. Silvia Marchesi & Tania Masi, 2019. "Sovereign risk after sovereign restructuring. Private and official default," Working Papers 423, University of Milano-Bicocca, Department of Economics, revised Nov 2019.
    12. Galina Hale & Peter Jones & Mark M. Spiegel, 2014. "Home currency issuance in global debt markets," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    13. Zvi Hercowitz & Michel Strawczynski, 1998. "On The Cyclical Bias In Government Spending," Bank of Israel Working Papers 1998.06, Bank of Israel.
    14. Mr. Richard I Allen & Yasemin Hurcan & Peter Murphy & Mr. Maximilien Queyranne & Mr. Sami Yläoutinen, 2015. "The Evolving Functions and Organization of Finance Ministries," IMF Working Papers 2015/232, International Monetary Fund.
    15. Niels D. Gilbert & Jasper F.M. Jong, 2017. "Do European fiscal rules induce a bias in fiscal forecasts? Evidence from the Stability and Growth Pact," Public Choice, Springer, vol. 170(1), pages 1-32, January.
    16. Ehrhart, Karl-Martin & Gardner, Roy & von Hagen, Jurgen & Keser, Claudia, 2007. "Budget processes: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 59(2), pages 279-295, May.
    17. Gong Cheng & Javier Diaz-Cassou & Aitor Erce, 2019. "The macroeconomic effects of official debt restructuring: evidence from the Paris Club," Oxford Economic Papers, Oxford University Press, vol. 71(2), pages 344-363.
    18. Rybacki, Jakub, 2021. "Does International Monetary Fund Favor Certain Countries During the Fiscal Forecasting – Evidence of the Institutional Biases?," MPRA Paper 107681, University Library of Munich, Germany.
    19. Ricardo Sabbadini, 2017. "Overcoming the Original Sin: Gains from Local Currency External Debt," Working Papers, Department of Economics 2017_27, University of São Paulo (FEA-USP).
    20. Juergen von Hagen, 2010. "The Sustainability of Public Finanaces and Fiscal Policy Coordination in the EMU," CASE Network Studies and Analyses 412, CASE-Center for Social and Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:joinma:v:7:y:2015:i:2:p:165-179:n:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.