IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/67747.html
   My bibliography  Save this paper

Garrison's Capital-Based Macroeconomics: The Role of Deficit, Credit Control and Taxation

Author

Listed:
  • Ferlito, Carmelo

Abstract

It could be quite simple to quite simple to argue that, in the realm of the Austrian School of Economics, public finance plays no role. However, the Austrian perspective is very wide and, starting from Hayek, it is possible to trace a path that arrives to Roger Garrison. Garrison’s capital-based macroeconomics is the attempt to write a new general macroeconomics founded on time, expectations and capital. Starting from that basic graphic tool called Hayek’s triangle, Garrison tries to verify which instruments, in the field of political economy, are consistent with a sustainable growth. He considers the following cases: deficit finance, deficit spending (inert government projects, nationalized industries, infrastructures) and tax reform, recognizing a role to fiscal policy, but stressing the preference for a general institutional change.

Suggested Citation

  • Ferlito, Carmelo, 2011. "Garrison's Capital-Based Macroeconomics: The Role of Deficit, Credit Control and Taxation," MPRA Paper 67747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67747
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/67747/1/MPRA_paper_67747.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roger W. Garrison, 2004. "A Roundabout Approach to Macroeconomics: Some Autobiographical Reflections," Chapters, in: Michael Szenberg & Lall Ramrattan (ed.), Reflections of Eminent Economists, chapter 11, Edward Elgar Publishing.
    2. R. W. Garrison, 1997. "The Lachmann Legacy: An Agenda for Macroeconomics," South African Journal of Economics, Economic Society of South Africa, vol. 65(4), pages 214-223, December.
    3. Roger W. Garrison, 1986. "Hayekian Trade Cycle Theory: A Reappraisal," Cato Journal, Cato Journal, Cato Institute, vol. 6(2), pages 437-459, Fall.
    4. Carilli, Anthony M & Dempster, Gregory M, 2001. "Expectations in Austrian Business Cycle Theory: An Application of the Prisoner's Dilemma," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 14(4), pages 319-330, December.
    5. Garrison, Roger W., 1984. "Time and money: The universals of macroeconomic theorizing," Journal of Macroeconomics, Elsevier, vol. 6(2), pages 197-213.
    6. Roger W. Garrison, 1992. "The Limits of Macroeconomics," Cato Journal, Cato Journal, Cato Institute, vol. 12(1), pages 165-178, Spring/Su.
    7. Garrison, Roger W, 1984. "Deficits and Inflation: A Comment," Economic Inquiry, Western Economic Association International, vol. 22(4), pages 593-596, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferlito, Carmelo, 2015. "Malaysia NAP: More Shadows than Lights," MPRA Paper 67714, University Library of Munich, Germany.
    2. Ferlito, Carmelo, 2013. "Bruno Leoni and the Socialist Economic Calculation Debate," MPRA Paper 67745, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert F. Mulligan, 2015. "Roger W. Garrison and the Integration of Austrian and Mainstream Macroeconomics," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 30(Winter 20), pages 59-79.
    2. William J. Luther & J. P. McElyea, 2018. "Austrian Macroeconomics in Search of Its Uniqueness," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 33(Summer 20), pages 1-20.
    3. Robert F. Mulligan, 2005. "The Austrian Business Cycle: a Vector Error-correction Model with Commercial and Industrial Loans," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 21(Fall 2005), pages 59-91.
    4. Randall G. Holcombe, 2017. "Malinvestment," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(2), pages 153-167, June.
    5. Simon Bilo, 2021. "Hayek’s Theory of Business Cycles: A Theory That Will Remain Obscure?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Fall 2021), pages 27-47.
    6. Robert Mulligan, 2006. "Accounting for the business cycle: Nominal rigidities, factor heterogeneity, and Austrian capital theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(4), pages 311-336, December.
    7. J. Subrick & Andrew Young, 2010. "Nobelity and novelty: Finn Kydland and Edward Prescott’s contributions viewed from Vienna," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(1), pages 35-53, March.
    8. Fillieule Renaud, 2013. "The Explanation of the Subprime Crisis According to the Austrian School: A Defense and Illustration," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 19(1), pages 101-136, June.
    9. François Facchini, 2010. "2007 : une crise systémique ?," Revue d'Économie Financière, Programme National Persée, vol. 97(2), pages 155-183.
    10. Kchirid, Mustapha & Tarbalouti, Essaid & Elgraa, Mohamed, 2013. "Le comportement du musulman en matière de crédit à intérêt face à la contrainte religieuse [The behavior of the Muslim regarding credit with interest in front of the religious constraint]," MPRA Paper 56171, University Library of Munich, Germany.
    11. Victor I. Espinosa & Miguel A. Alonso Neira & Jesús Huerta de Soto, 2021. "Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    12. G. Manish & Benjamin Powell, 2014. "Capital Theory and the Process of Inter-Temporal Coordination: The Austrian Contribution to the Theory of Economic Growth," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(2), pages 133-142, June.
    13. Philipp Bagus & David Howden, 2011. "Monetary equilibrium and price stickiness: Causes, consequences and remedies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 383-402, December.
    14. François Facchini, 2010. "2007 : une crise systémique ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00480066, HAL.
    15. Philipp Bagus & David Howden & Jesús Huerta de Soto Ballester, 2018. "Entrepreneurial Error Does Not Equal Market Failure," Journal of Business Ethics, Springer, vol. 149(2), pages 433-441, May.
    16. François Facchini, 2004. "La théorie autrichienne des cycles : une théorie de la récurrence des erreurs collectives d’anticipation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286790, HAL.
    17. Thierry Aimar & Francis Bismans & Claude Diebolt, 2012. "Economic Cycles: A Synthesis," Working Papers 12-11, Association Française de Cliométrie (AFC).
    18. François Facchini, 2015. "Financial Fragility and Central Bank: Are Minsky’s Crisis and Austrian Business Cycle are Complementary?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01349787, HAL.
    19. Lawrence H. White, 2008. "Did Hayek and Robbins Deepen the Great Depression?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(4), pages 751-768, June.
    20. Centi Jean-Pierre, 1999. "Money And Credit In An Openended Universe," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 9(2-3), pages 1-28, June.

    More about this item

    Keywords

    Fiscal Policy; Monetary Policy; Hayek; Garrison; Capital Structure.;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:67747. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.