How far would share prices fall in OECD countries if the governance of capitalism became more balanced?
A more balanced governance of capitalism in OECD countries would lead to: A stable income distribution between wages and profits. The introduction of a CO 2 price and regulations that brought the OECD back on a CO 2 emissions path compatible with the international climate agreements. These corrections would obviously have a negative effect on share prices, due to : Lower corporate profitability; Higher energy prices and the destruction of capital related to fossil fuels. I n the event of a rebalancing of capitalism, share prices could fall by 65%!