Suchergebnisse

This book presents alternative macroeconomic perspectives, primarily open economy, on the limitations of discretionary fiscal policy, with a focus on government spending. Following an overview on the post-crisis Keynesian revival and of the macro-foundations needed for subsequent analysis, different perspectives are expounded that highlight the failings of fiscal activism. These perspectives include extended loanable funds analysis, an expenditure-output related model incorporating money and exchange rates, and a dependent economy framework. The approaches are used to examine investment and net export crowding out effects and their implications for national income, and are then adapted to show the macroeconomic impact of different fiscal consolidation measures, revealing that the nature of fiscal repair is critical. A concluding chapter evaluates the nexus between budgetary policy and confidence, summarises the key failings of fiscal activism, and suggests fiscal policy goals.

The world economy -- International monetary measures -- The exchange rate and competitiveness -- Consumption, saving and investment -- Saving, investment and capital flows -- Interest parity -- The government budget and fiscal policy -- The Central Bank and monetary policy -- Macroeconomic policy in the short run -- Foreign exchange market intervention -- Tradables and nontradables -- Commodity prices and the terms of trade -- Financial crises and foreign investment -- Economic growth

Introduction -- The global economy and external imbalances -- Global imbalances and exchange rates -- External imbalances and national income -- International capital mobility and national income -- External imbalances, exchange rates, and interest rates -- Money, exchange rates, and the balance of payments -- Stabilisation policy, interest rates, and national income -- The real exchange rate, external imbalances, and national income -- Select stabilisation policy issues