Title: On the institutional safeguarding of monetary policy – a post-Keynesian perspective

Authors: Arne Heise, Toralf Pusch

Addresses: Department of Socioeconomics, Hamburg University, VMP 9, 20146 Hamburg, Germany; Department of Economics, Izmir Economics University, Sakarya Cad. No. 156, 35330, Balcova, Izmir, Turkey. ' Institut fur Wirtschaftsforschung Halle, Bereich Forschungsdirektion, Kleine Markerstr. 8, 06108, Halle (Saale), Germany

Abstract: The paper takes a fresh look at the governance of the most important macroeconomic objectives: price stability and full employment. On the basis of a post-Keynesian market constellations approach, the necessity and institutional requirements of the coordination of macroeconomic policy areas in general and an optimal central bank setting in particular are analysed, and an amelioration of monetary policy of the neo-Keynesian |new macroeconomic consensus| is provided.

Keywords: monetary policies; policy coordination; central banks; banking independence; market constellations; constellation research; institutional safeguards; post-Keynesian perspectives; John Maynard Keynes; governance; price stability; full employment; macroeconomics; neo-Keynesian consensuses; new consensus; public policy; economic policies; alternative paradigms.

DOI: 10.1504/IJPP.2011.039581

International Journal of Public Policy, 2011 Vol.7 No.1/2/3, pp.161 - 179

Published online: 14 Jan 2015 *

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