Overview
Radically re-casts fiscal policy following the limited economic growth after the Global Financial Crisis
Gathers together a wide variety of perspectives on possible alternatives to fiscal activism
Considers how post GFC experience has parallels with the post-Depression experience with regard to investment uncertainty, and trade protectionism
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Table of contents (9 chapters)
Keywords
About this book
The book will appeal to university lecturers and researchers in macroeconomics and economists working in government and the private sector.
Reviews
After the 2008 financial crises, the True Believers re-emerged and managed to influence the policies of many countries, defining as “stupid” policymakers who did not adopt Keynesian policies. In this lucidly-written and well- argued book, Professor Makin presents many theoretical reasons why policymakers would be advised to listen to the Atheists. This reviewer found most of those reasons highly convincing.” (Vito Tanzi, Former Director of the Fiscal Affairs Department of the IMF)
“Tony Makin's book does a great service to modern economics. Crude Keynesians focus on effects of spending increases or tax cuts. Makin analyses the offsetting factors that exist in the real world of fiscal policy implementation. Government spending usually creates debt. Debt, especially large amounts, limits spending as lenders require interest to be paid and its repayment. Does increased government increase or decrease confidence of households and business? Another example where standard crude Keynesian analysis breaks down.” (Peter Jonson, former Head of Research, Reserve Bank of Australia)
“The attempted revival of activist fiscal policy as a response to the financial crisis of 2008 was based in part on a failure to fully appreciate the role of monetary policy and the exchange rate. In an economy with an inflation targeting central bank and floating exchange rate, there is no reason to expect fiscal policy to be effective in stabilising aggregate demand. Makin carefully elucidates the analytical foundations of this view of fiscal policy ineffectiveness in a way that is accessible to policymakers, as well as academics.” (Stephen Kirchner, Program Director, United States Studies Centre, University of Sydney)
Authors and Affiliations
About the author
Bibliographic Information
Book Title: The Limits of Fiscal Policy
Authors: Anthony J. Makin
DOI: https://doi.org/10.1007/978-3-319-90158-9
Publisher: Palgrave Pivot Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2018
Hardcover ISBN: 978-3-319-90157-2Published: 07 June 2018
eBook ISBN: 978-3-319-90158-9Published: 24 May 2018
Edition Number: 1
Number of Pages: XIII, 121
Number of Illustrations: 34 b/w illustrations
Topics: Economic Policy, Macroeconomics/Monetary Economics//Financial Economics