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Fiscal policy in the monetary theory of production: an alternative to the "new consensus" approach

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Author Info
Guglielmo Forges Davanzati
Andrea Pacella
Riccardo Realfonzo
Abstract

This paper provides an alternative view to the new consensus approach, from the standpoint of the monetary theory of production. It is shown that output growth is demand driven, so that fiscal policies, as well as direct state intervention above all in the labor market, are effective for increasing output and employment. This also applies to the current dynamics, particularly to the effects of the economic policy of the European Union, where, as will be shown, respect for the Maastricht parameters has contributed to determine poor macroeconomic performance.

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File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=052671772164WL2H
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Publisher Info
Article provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.

Volume (Year): 31 (2009)
Issue (Month): 4 (July)
Pages: 605-621
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:mes:postke:v:31:y:2009:i:4:p:605-621

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348

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Related research
Keywords: fiscal policy; monetary theory of production; new consensus;

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This page was last updated on 2009-12-19.


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