Understanding how Redistributive Growth Produces Financial Stagnation

The project is studying structural breaks in long-term trends in economy and finance. The goal is to interpret how technological trends combine with stagnation to produce rising inequality and financial stagnation. The core model of redistributive IT progress predict decline in credit demand in combination with the inelastic demand for safety. This results is falling interest rates and excess savings stored in existing assets, with rising mortgage credit and household leverage. The project will deliver several theoretical and empirical papers within this broad framework.