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http://bura.brunel.ac.uk/handle/2438/9029
Title: | Fiscal policy, fairness between generations, and national saving |
Authors: | Barrell, R Weale, M |
Keywords: | Fiscal policy;Keynesian theory;Public debt;Automatic stabilizers;Output gap;Paradox of thrift |
Issue Date: | 2010 |
Publisher: | Oxford University Press |
Citation: | Oxford Review of Economic Policy, 26(1), 38 - 47, 2010 |
Abstract: | This paper takes a close look at the Keynesian theory underlying the policy of fiscal stimulus being undertaken or considered in many countries, led by the United States. A central question is whether a debt-financed fiscal stimulus now must adversely affect future taxpayers, owing to the debt burden being created. There are many interesting issues considered, for example, the role of automatic stabilizers, and the basis for Keynes's paradox of thrift. The model used is for a single country with a floating exchange rate. It is assumed that, for various reasons, monetary policy cannot eliminate high unemployment and a resultant output gap. In fact, there is a market failure, which government action needs to compensate for, at least temporarily. |
Description: | This article is available open access through the publisher’s website at the link below. © The Author 2010. |
URI: | http://oxrep.oxfordjournals.org/content/26/1/38 http://bura.brunel.ac.uk/handle/2438/9029 |
DOI: | http://dx.doi.org/10.1093/oxrep/grq001 |
ISSN: | 0266-903X |
Appears in Collections: | Economics and Finance Dept of Economics and Finance Research Papers |
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