Austerity, fiscal consolidation, fiscal discipline, and fiscal deficit targets have become the buzzwords of contemporary macroeconomic policy, but neoliberal macroeconomics has dislodged full employment as the target of policy, replacing it with a low and stable inflation target. Monetary policy under the control of an independent central Bank became the primary instrument to assist free and globalized markets to propel economies towards full employment.

Format: Hardback
Length: 238 pages
Publication date: 15 September 2023
Publisher: Manohar Publishers and Distributors

Austerity, fiscal consolidation, fiscal discipline, and fiscal deficit targets have become the buzzwords of contemporary macroeconomic policy. By tracing the history of macroeconomic schools of thought, Maximum Government, Maximum Governance explores the origins, essence, shortcomings, and deception of mainstream neoliberal macroeconomics. Arguing that economies are financially constrained, neoliberal macroeconomics dislodged full employment as the target of policy, replacing it with a low and stable inflation target. Monetary policy under the control of an independent central bank became the primary instrument to assist free and globalized markets to propel economies towards full employment.

Austerity, Fiscal Consolidation, Fiscal Discipline, and Fiscal Deficit Targets: The Buzzwords of Contemporary Macroeconomic Policy

In recent years, austerity, fiscal consolidation, fiscal discipline, and fiscal deficit targets have become the center of attention in macroeconomic policy discussions. These terms have gained prominence as governments around the world seek to address economic challenges and achieve sustainable growth. However, the origins, essence, shortcomings, and deception of mainstream neoliberal macroeconomics have been a subject of debate for many years.

Maximum Government, Maximum Governance: Exploring the Origins, Essence, Shortcomings, and Deception of Mainstream Neoliberal Macroeconomics

One of the key concepts in neoliberal macroeconomics is the idea of maximum government. This concept suggests that governments should intervene in the economy to achieve full employment and price stability. However, the reality of neoliberal macroeconomics is quite different. Neoliberal macroeconomics dislodged full employment as the target of policy, replacing it with a low and stable inflation target. This shift in focus has had significant consequences for the global economy.

Monetary Policy under the Control of an Independent Central Bank: The Primary Instrument to Assist Free and Globalized Markets to Propel Economies Towards Full Employment

Monetary policy under the control of an independent central bank became the primary instrument to assist free and globalized markets to propel economies towards full employment. The central bank's role was to control the money supply and interest rates to achieve price stability and promote economic growth. However, the effectiveness of monetary policy has been questioned in recent years. Some argue that the central bank's policies have been too restrictive, leading to low inflation and slow economic growth. Others argue that the central bank's policies have been too loose, leading to high inflation and financial instability.

The Impact of Neoliberal Macroeconomics on the Global Economy

Neoliberal macroeconomics has had a significant impact on the global economy. It has led to the deregulation of financial markets, the privatization of public services, and the reduction of government spending. These policies have been criticized for their negative impact on the poor and middle class. For example, the deregulation of financial markets has led to the creation of financial bubbles, which have resulted in economic crises such as the global financial crisis of 2008. The privatization of public services has led to the reduction of public services and the increase in private sector profits. The reduction of government spending has led to the reduction of public services and the increase in private sector profits.

The Need for Alternative Macroeconomic Policies

In response to the shortcomings of neoliberal macroeconomics, there has been a growing need for alternative macroeconomic policies. These policies aim to address the social and economic inequalities that have been created by neoliberal policies. Alternative macroeconomic policies include progressive taxation, social welfare programs, and labor market reforms. Progressive taxation aims to redistribute wealth from the rich to the poor, while social welfare programs aim to provide support to the poor and middle class. Labor market reforms aim to increase job opportunities and improve the quality of work.

Conclusion

In conclusion, austerity, fiscal consolidation, fiscal discipline, and fiscal deficit targets have become the buzzwords of contemporary macroeconomic policy. While neoliberal macroeconomics has had some successes, it has also had significant shortcomings and deception. Alternative macroeconomic policies are needed to address the social and economic inequalities that have been created by neoliberal policies. By implementing these policies, we can create a more equitable and sustainable global economy.

Dimension: 254 x 203 (mm)
ISBN-13: 9789388540056