The Progressive Economy Forum https://progressiveeconomyforum.com Thu, 17 Feb 2022 21:30:24 +0000 en-GB hourly 1 https://wordpress.org/?v=6.4.2 https://progressiveeconomyforum.com/wp-content/uploads/2019/03/cropped-PEF_Logo_Pink_Favicon-32x32.png The Progressive Economy Forum https://progressiveeconomyforum.com 32 32 Reinstating fiscal policy for normal times https://progressiveeconomyforum.com/blog/robert-skidelsky-and-simone-gasperin-reinstating-fiscal-policy-for-normal-times-public-investment-and-public-job-programmes/ Wed, 09 Jun 2021 16:16:19 +0000 https://progressiveeconomyforum.com/?p=8875 The paper outlines the case for fiscal policy to regain a permanent status of primacy in modern macroeconomic management, beyond the pandemic emergency and makes the case for public job programmes

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]]> This paper, just published in the PSL Quarterly Review by PEF Council member Robert Skidelsky and Simone Gasperin of UCL Institute for Innovation and Public Purpose, upholds the classical Keynesian position that a laissez-faire market economy lacks a spontaneous tendency to full employment. Focusing on the UK case, it argues that monetary policy could not prevent the economic collapse of 2008-9 or achieve full recovery from the Great Recession that followed. The paper outlines the case for fiscal policy to regain a permanent status of primacy in modern macroeconomic management, beyond the pandemic emergency. It distinguishes between public investment and automatic stabilisers, reducing discretionary actions to a minimum. It presents the case for re-empowering the State’s public investment function and for reforming the system of automatic counter-cyclical stabilisers by means of public jobs programmes.

Skidelsky-Gasperin-2021-Reinstating-fiscal-policy-for-normal-times_Public-investment-and-Public-Job-Programmes-1Download

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