This paper examines the macroeconomic effects of social protection expenditures. Using a social accounting matrix (SAM) for Brazil, the study evaluates the impacts of two income transfer programs – Bolsa Família (targeted) and Universal Basic Income (UBI) – on GDP and income distribution through simulations. We find that both programs have similar positive effects on GDP. However, Bolsa Família enables lower-income groups to capture a larger share of the transfers, enhancing its redistributive impact. We show that the funding mechanism has a greater influence on macroeconomic outcomes than program design. Financing through progressive taxes generates positive effects on GDP for both programs, whereas funding via public spending cuts leads to negative net impacts. These findings emphasize aligning funding strategies with income transfer programs to promote both economic growth and equality.
Using a panel of 27 EU economies over the period 2020–2024, during which both deflationary and inflationary episodes occurred in Europe, I examine the short-term effects of inflation and interest rates on GDP growth. This period was characterized by contrasting inflation dynamics and significant shifts in monetary policy. The results suggest that GDP growth is negatively affected by the tightening of monetary policy, which drives interest rates upwards. In contrast, even within a period of significant and very unusual inflation spikes, inflation does not appear to significantly influence the short-term growth dynamics of the European Union economies. These findings help account for the subdued growth performance of European economies during the recent tightening cycle.
This paper synthesizes current research on the interconnections between gendered wealth inequality and macroeconomic dynamics. Combining empirical evidence from European household data with post-Keynesian macroeconomic modeling, it shows that gender wealth gaps are concentrated at the top of the distribution. Intra-household analyses reveal that decision-making power strongly correlates with wealth ownership, disproportionately benefiting men. Macroeconomic models indicate that wealth inequality is structurally persistent and likely to increase, with minimal self-correcting effects through lower growth. We argue that this is consistent with a view of male-centered social norms as being persistent and that integrated policies need to address wealth redistribution, gender inequality, and, indeed, the climate crisis.
