Keynesian Macroeconomic Policy: Theoretical Analysis and Empirical Evidence
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Publication Date
2018Journal Title
Panoeconomicus
ISSN
1452-595X
Publisher
Economists' Association of Vojvodina
Type
Article
This Version
AM
Metadata
Show full item recordCitation
Arestis, P., Filho, F. F., & Terra, F. H. B. (2018). Keynesian Macroeconomic Policy: Theoretical Analysis and Empirical Evidence. Panoeconomicus https://doi.org/10.2298/PAN1801001A
Abstract
Investment depends on subjective factors, such as expectations, conventions, and confident animal spirits. In a context of economic instability and crises, economic policy is the main source to support entrepreneurs’ expectations and investment. In this sense, macroeconomic policies are capable of affecting effective demand and building a good institutional environment, which is essential to keep the entrepreneurs’ expectations confident and promote their animal spirits. Given these propositions, this contribution has two objectives: the first is to develop a Keynesian type of macroeconomic policy able to stimulate investment and effective demand, and, as a result, mitigate unemployment. The idea is to offer alternative macroeconomic policy prescriptions in relation to the New Consensus Macroeconomics one. This proposal aims to establish the role, according to the Post Keynesian view, the logic of operation of each policy, and the proper coordination among them of these Keynesian macroeconomic policies. The second objective is to present, briefly, relevant empirical evidence of this Post Keynesian macroeconomic policies.
Keywords
Keynes, Economic Policy, Fiscal Policy, Monetary Policy, Exchange Rate Policy
Identifiers
External DOI: https://doi.org/10.2298/PAN1801001A
This record's URL: https://www.repository.cam.ac.uk/handle/1810/273583
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