Tag Archives: fiscal policy

 The AssertionEven before Corbyn launched the Labour Manifesto, the Institute of Fiscal Studies launched its critique of Labour tax policies, asserting that Labour’s proposed tax increases were not limited to the richest,:"The truth is of course that in the end corporation tax is paid by workers, customers or shareholders so would affect many in the population".  On the BBC Shadow Chancellor John McDonnell politely rejected the IFS critique, which in essence asserts that the...

I’ve just written a ‘top 10’ overview of the recent Alberta budget. Points raised in the post include the following: -The budget lays out a four-year strategy of spending cuts, letting population growth and inflation do much of the heavy lifting. -After one accounts for both population growth and inflation, annual provincial spending in Alberta by 2022 is projected to be 16.2% lower than it was last year. -Alberta remains Canada’s lowest-taxed province. It also...

I’ve just written a ‘top 10’ overview of the recent Alberta budget. Points raised in the post include the following: -The budget lays out a four-year strategy of spending cuts, letting population growth and inflation do much of the heavy lifting. -After one accounts for both population growth and inflation, annual provincial spending in Alberta by 2022 is projected to be 16.2% lower than it was last year. -Alberta remains Canada’s lowest-taxed province. It also...

No mention of MMT though, and a reliance on central banks to combine fiscal policy with monetary policy under the rubric of "helicopter money," a term that Milton Friedman coined. They still can't pry loose from his influence, apparently.  Democracy? Meh. Go with technocracy that the elite control.AxiosMainstream economists are getting radical Dion Rabouin

As I type this (Sunday), I am heading to Brighton, England from Edinburgh. We had two sessions in Edinburgh yesterday (Saturday) and it was great to share ideas with some really committed people. We had to dodge a Hollywood closure of the streets (‘Fast and Furious 9 had commandeered the inner city to film a car or two swerving out of control or whatever, and I hope the city received heaps for the inconvenience to its citizens. But, with the direction now south, and tomorrow’s two events...

The final Mario Draghi press conference had him underlining the importance of fiscal policy. Since I am supposed to be working on my slides for my presentation in the panel "MMT: Who is Listening?", one might argue that it looks like a lot of people. However, it is unclear how significant the shift in opinion is from a practical perspective.... Bond Economics The Pivot To Fiscal?Brian Romanchuk

 By Sue Konzelmann, John Weeks and Marc Fovargue-Davies ‘Rethinking Britain: Policy Ideas for the Many’ is a publication of Policy Press (19 September 2019), in partnership with PRIME and the Progressive Economic Forum (PEF).  Price £14.99, pre-orders £11.99 via Bristol University Press website. It is edited by Sue Konzelmann, Susan Himmelweit,...

Curiously, no mention of MMT. But useful for the analysis showing that monetary policy is not cutting it and that fiscal policy will inevitably gain in prominence. It is now pretty widely recognized that the period of monetarism spearheaded by Milton Friedman (and the Chicago School) as the "successor" of John Maynard Keynes as international policy guru is over. The question now is, who will the new gurus be? Will the pendulum swing back to Cambridge and Wynn Godley?FA — Financial...

In an environment of secular stagnation in the developed economies, central bankers’ ingenuity in loosening monetary policy is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means. Throwing in the towel (but not endorsing MMT). Politically, this is about control of the Democratic Party after the transition from Clinton-Obama-Third Way. Summers is on the side of the...

For at least a few moments this week, President Trump suggested a payroll tax cut to stimulate the stalling macroeconomy. Although it appears that he has already changed his mind, it’s worth taking a look at the strategy...just in case. Let’s say for sake of argument that the negative signals we have received of late are accurate. What should we do if we slip into full-fledged recession? Cut interest rates? Lower the budget deficit? Decrease payroll taxes? It turns out that the last one is...