Macroeconomic Policy after the Conservative Era: Studies in Investment, Saving and Finance

Description

A conservative approach to economic growth has dominated policy circles for close to two decades. This approach holds that the key to restoring economic growth lies in reducing the size and role of government in the market economy through deregulation of the financial sector, privatization, and lower taxes. The contributors to this book argue that the principles of 'trickle down' economics are of dubious validity, and have led to economic stagnation, high unemployment, and increasing inequality. They develop a new perspective on macroeconomic policy, one affirming that egalitarian and democratic economic structures are not only compatible with economic revival, but in fact offer the best hope for sustainable growth of living standards. Their alternative recognizes that markets have an important role to play, but only within the framework of macroeconomic stability, corrections of market failures, and egalitarian rules of the game.

"This book deserves careful study both by those who believe in the conservative macro policy consensus and by those who question it, both of whom will be stimulated by this volume to do more research either to test or extend the results published here." Robert A. Blecker, Journal of Economiv Litertaure