Macroeconomic policy formulation: functional finance versus sound finance
by Neil Hart
Global Business and Economics Review (GBER), Vol. 15, No. 1, 2013

Abstract: Current macroeconomic policy formulation emphasises trade-offs associated with promoting economic recovery through expansionary fiscal policy and the need to deliver 'fiscal sustainability' defined in terms of stabilising and reducing government debt ratios. This paper argues that these 'tensions' do not emerge from a considered interpretation of orthodox macroeconomic theory, but instead from the self-imposed 'sound finance' constraints that governments have placed on the formulation of macroeconomic policies. Lerner's system of functional finance, said to have provided the logical framework for Keynes's policy, has been largely neglected in the recent literature and policy deliberation. This paper considers the relevance of Lerner's system of functional finance to contemporary macroeconomic policy formulation.

Online publication date: Wed, 30-Oct-2013

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com