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Tag "Under-consumption"
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China has moved to investment-led growth, after its exports fell sharply in the aftermath of the global financial crisis. Credit: Bigstock

yilmaz-akyuz In this column, an abridged version of a longer research paper 48 for the South Centre, Dr Yilmaz Akyuz writes that the world economy is facing under-consumption because of a low and declining share of wages in national income in all major advanced economies like the United States and the eurozone, as well as China. In order to move out of the fiscal drag, he argues that developing economies must reduce dependence on foreign markets and capital by abandoning neoliberal policies in practice, not just in rhetoric.

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