IDEAS home Printed from https://ideas.repec.org/a/mes/ijpoec/v40y2011i4p62-82.html
   My bibliography  Save this article

The Role of Public Investment as Principal Macroeconomic Tool to Promote Long-Term Growth

Author

Listed:
  • Mario Seccareccia

Abstract

The "new consensus" in macroeconomics downplayed fiscal policy prior to the financial crisis. This view dramatically changed during and immediately following the crisis. However, this view has witnessed a reversal and returned to the pre-crisis policy perspective, especially since 2010. In this article, the modern "financial balances" view of fiscal policy is analyzed. While this modern framework of analysis, which is diametrically opposed to the new consensus framework, is correct in its emphasis on functional finance (which ensues directly from the latter fiscal policy perspective), the article advocates a return to a view of long-term fiscal policy, which Keynes espoused both in The General Theory and thereafter on the "socialization of investment."

Suggested Citation

  • Mario Seccareccia, 2011. "The Role of Public Investment as Principal Macroeconomic Tool to Promote Long-Term Growth," International Journal of Political Economy, Taylor & Francis Journals, vol. 40(4), pages 62-82.
    • Handle: RePEc:mes:ijpoec:v:40:y:2011:i:4:p:62-82
    DOI: 10.2753/IJP0891-1916400403
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/IJP0891-1916400403
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/IJP0891-1916400403?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Massimo Florio, 2021. "Knowledge creation: new frontiers for public investment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(3), pages 379-386, September.
    2. Eichacker, Nina, 2020. "German Public Banks, Financial Competition, and Crisis: Institutional Change in German Banking and Financial Vulnerability Before the Global Financial Crisis," SocArXiv jkp5u, Center for Open Science.
    3. Zeilbeck, Severin, 2015. "An investment initiative for fiscally constrained EU member states: The role of synergetic financial instruments," IPE Working Papers 58/2015, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    4. Petra Došenoviæ Bonèa & Maks Tajnikar, 2018. "Austerity policies, economic growth and fiscal balance: lessons from Slovenia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 287-308.
    5. Massimo Cingolani, 2013. "Finance Capitalism: A Look at the European Financial Accounts," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 249-290, May.
    6. Gechert, Sebastian, 2012. "The multiplier principle, credit-money and time," MPRA Paper 34648, University Library of Munich, Germany.

    More about this item

    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:mes:ijpoec:v:40:y:2011:i:4:p:62-82. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MIJP20 .

    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.