Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324039 
Year of Publication: 
2021
Citation: 
[Journal:] PSL Quarterly Review [ISSN:] 2037-3643 [Volume:] 74 [Issue:] 296 [Year:] 2021 [Pages:] 3-24
Publisher: 
Associazione Economia civile, Rome
Abstract: 
This paper upholds the classical Keynesian position that a laissez-faire market economy lacks a spontaneous tendency to full employment. Focusing on the UK case, it argues that monetary policy could not prevent the economic collapse of 2008-9 or achieve full recovery from the Great Recession that followed. The paper then outlines the case for fiscal policy to regain a permanent status of primacy in modern macroeconomic management, beyond the pandemic emergency. It distinguishes between public investment and automatic stabilisers, reducing discretionary actions to a minimum. It presents the case for re-empowering the State'spublic investment function and for reforming the system of automatic counter-cyclical stabilisers by means of public jobs programmes.
Subjects: 
monetary policy
fiscal policy
public investment
job programmes
JEL: 
E32
E52
E61
E62
E63
H54
J68
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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