Incomes policies: Two approaches
Post-Keynesians in general, and Geoff Harcourt in particular, have always laid much emphasis on incomes policies, which allow policy-makers to implement expansionary demand-side policies and ensure price stability. Mainstream economics, instead, gives little, if any, relevance to incomes policies. The central bankâ€™s monetary policy is the main tool to be used to ensure price stability. In the mainstream approach, price stability is ensured by constraining the economyâ€™s level of output and employment below full employment. This can be defined as the mainstream implicit incomes policy. This article argues that policy indications different from the mainstream can be derived. This, in particular, is done by removing the typical hypothesis that, in the short period, productivity is constant and independent of variations of aggregate output. This sort of approach allows for non-inflationary demand expansionary policies, which at the same time can promote the productivity and efficiency of the economy as a whole. This line of analysis is largely influenced by the work of Geoff Harcourt.
Volume (Year): 8 (2011)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.elgaronline.com/ejeep|
When requesting a correction, please mention this item's handle: RePEc:elg:ejeepi:v:8:y:2011:i:1:p147-163. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Craven)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.