Keynesian Economic Policies for the New Millennium

Arestis, Philip; Sawyer, Malcolm

doi:10.1111/1468-0297.00281

Cited by 64 publications

(24 citation statements)

References 41 publications

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“…Over the short-run horizon of the business cycle, our results from the implied error-correction model unambiguously indicate that both monetary and fiscal policies exert significant Granger-causal effects upon the real side of the economy. Overall, this article provides another piece of evidence in support of the posture of Fazzari [6] and Arestis and Sawyer [8,9], among others, that fiscal policy is alive and well and remains a powerful tool for fighting economic stagnation, and does so both in the long-and shortruns.…”

Section: Discussionmentioning

confidence: 61%

“…However, their results have been challenged on various grounds by several subsequent studies including Goldfeld and Blinder [3]; BM Friedman [4]; Darrat [5]; Fazzari [6]; Serletis and Koustas [7]; and Arestis and Sawyer [8,9], to name just a few (For more recent studies on the stabilization role of fiscal and monetary policies, see Charpe et al [10] and Farmer and Plotnikov [11] among others).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Monetary and Fiscal Policies on Real Output: A Re-examination

Darrat¹,

Tah

Mbanga³

2014

Bus Eco J

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Research continues to investigate the relative efficacy of monetary and fiscal policies for stabilizing the US economy, a debate that began with Anderson and Jordan's well-known study. This paper examines the contention of Senbet that monetary policy matters for stabilizing real economic activities; fiscal policy does not. We show that this claim is unfounded and apparently the outcome of prematurely dismissing fiscal policy from the cointegrating vector. In the context of a properly specified model, results we obtained from cointegration and error-correction tests using data and time period similar to Senbet's consistently suggest that only fiscal policy Granger-causes real output over the long-run. Moreover both monetary and fiscal actions Granger-cause significant short-run effects on the real side of the economy.

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Section: Discussionmentioning

confidence: 61%

Section: Introductionmentioning

confidence: 99%

The Impact of Monetary and Fiscal Policies on Real Output: A Re-examination

Darrat¹,

Tah

Mbanga³

2014

Bus Eco J

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“…The provision of sufficient aggregate demand is a necessary though not sufficient condition for the achievement of high levels of employment. As I have argued elsewhere (Sawyer, 1995, Arestis andSawyer, 1998) there are other barriers to high employment, notably lack of productive capacity, inflation barriers, and balance of trade constraints, as well as political and intellectual constraints. The ELR addresses only the issue of insufficient aggregate demand, and not the other limitations.…”

Section: Resultsmentioning

confidence: 89%

Employer of Last Resort: Could It Deliver Full Employment and Price Stability?

Sawyer¹

2003

Journal of Economic Issues

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: Proposals under the headings of employer of last resort (ELR) and job guarantee have been made under which jobs would be available to all at a basic wage. These schemes promise a combination of full employment and price stability. This paper examines whether they would be able to deliver on such a promise. The paper discusses the notion of 'functional finance' which forms an important element of ideas on ELR. The nature and role of money as envisaged in the tax driven money approach which is often associated with the ELR proposals is critically examined. It is argued that whilst the ELR budgetary costs may be relatively small, this would also be the case from any public sector employment program. The question is raised as to whether there would be jobs of a type which could fit in with the ELR proposals, and what the nature of these jobs might be. The paper considers the extent to which ELR would involve underemployment and unemployment by another name. The possible inflationary implications of the ELR are next considered. This has two aspects : first to consider whether inflation would result from unemployment falling below any form of supply-side inflation barrier (such as a NAIRU), and second to consider whether the use of a base wage would bring price stability as claimed. In the subsequent section, the idea that ELR employment would form a buffer stock is critically examined.

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“…23. See Arestis & Sawyer (1998) for the role of aggregate demand in setting the level of economic activity, and Setterfield (2002) for a detailed exposition on demand-led growth models. 24.…”

Section: Resultsmentioning

confidence: 99%

How best to link poverty reduction and debt sustainability in IMF–World Bank models?

Granville

Mallick

2005

International Review of Applied Economics

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This paper attempts to provide an economic model in the context of developing countries to address the policy strategies related to poverty reduction. With a view to deal with the shortcomings of the existing approaches as regards poverty reduction, this paper develops a model on the basis of the policy framework of the IMF and the World Bank to show how demand growth can be a crucial mechanism in determining the potential rate of growth, and then to suggest ways in which poverty-conceptualised officially in absolute terms with a subjective cut-off point (e.g. US $1/$2 a day), and a new objective measure in terms of consumption deprivation-can be linked with the key policy variables contained in the adjustment programmes. A strategy of investment in infrastructure and

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Keynesian Economic Policies for the New Millennium

Cited by 64 publications

References 41 publications

The Impact of Monetary and Fiscal Policies on Real Output: A Re-examination

The Impact of Monetary and Fiscal Policies on Real Output: A Re-examination

Employer of Last Resort: Could It Deliver Full Employment and Price Stability?

How best to link poverty reduction and debt sustainability in IMF–World Bank models?

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