Resolving economic deadlock
AbstractIn the introductory chapter a novel economic policy is proposed which consists of a) 'virtualizing' debt (putting it on the Central Bank balance sheet) and b) reduce the money-multiplier by an implementation of a strong minimum reserving policy. The main part shows exposes a flaw in the concept of capital in neoclassical thinking, with special reference to Tobin's q-theory. This has the implication that neoclassical thinking - Keynesian and 'classical' - overstates investment activity and the tendency to full employment. The last two chapters - on China and the Nazi-Recovery - are empirical illustrations.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32221.
Date of creation: 30 Apr 2011
Date of revision:
Keynesianism; deficit spending; public debt; capital theory; monetary theory and policy;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
- E00 - Macroeconomics and Monetary Economics - - General - - - General
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Institutional; Evolutionary
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-HME-2011-07-21 (Heterodox Microeconomics)
- NEP-HPE-2011-07-21 (History & Philosophy of Economics)
- NEP-MAC-2011-07-21 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schiantarelli, F. & Georgoutsos, D., 1990. "Monopolistic competition and the Q theory of investment," European Economic Review, Elsevier, vol. 34(5), pages 1061-1078, July.
- Ritschl, Albrecht, 2002.
"Deficit Spending in the Nazi Recovery, 1933-1938: A Critical Reassessment,"
Journal of the Japanese and International Economies,
Elsevier, vol. 16(4), pages 559-582, December.
- Albrecht Ritschl, . "Deficit Spending in the Nazi Recovery, 1933-1938: A Critical Reassessment," IEW - Working Papers 068, Institute for Empirical Research in Economics - University of Zurich.
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
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