Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105898
Authors: 
Hein, Eckhard
Truger, Achim
Year of Publication: 
2008
Series/Report no.: 
IMK Working Paper 03/2008
Abstract: 
The New Consensus approach in macroeconomics is criticised for its exclusive but unwarranted reliance on stabilising monetary policies, for its ill-designed approach to the role of wages and wage policies, and for its complete neglect of fiscal policies. From a Post-Keynesian perspective, it is argued that fiscal policies play an important role for macroeconomic development, albeit the whole macroeconomic policy-mix of monetary, fiscal and wage policies as well as open economy conditions should be considered. Based on this view macroeconomic performance and macroeconomic policies in France, Germany, Sweden and the UK between 1996 and 2005 are analysed, with a special focus on the role of fiscal policies. It is shown that the fiscal policy stance is important for the explanation of different developments in these economies. However, fiscal policies are not the whole story, monetary policies, wage policies and open economy conditions matter as well.
Subjects: 
Fiscal policy
macroeconomic policies
New Consensus
Post-Keynesian macroeconomics
France
Germany
UK
Sweden
JEL: 
E61
E62
E63
E64
E65
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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