[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v37y2014i1p43-66.html
   My bibliography  Save this article

Reorienting fiscal policy: a bottom-up Approach

Author

Listed:
  • Pavlina Tcherneva
Abstract
The present article offers a fundamental critique of fiscal policy as it is understood in theory and exercised in practice. Two specific demand-side stabilization methods are examined here: conventional pump priming and the new designation of fiscal policy effectiveness found in the new consensus literature. A theoretical critique of their respective transmission mechanisms reveals that they operate in a trickle-down fashion that not only fails to secure and maintain full employment, but itself contributes to the increasing postwar labor market precariousness and the erosion of income equality. The two conventional demand-side measures are then contrasted with the proposed alternative—a bottom-up approach to fiscal policy based on a reinterpretation of Keynes's original policy prescriptions for full employment. The article offers theoretical, methodological, and policy rationale for government intervention that includes specific direct employment and investment initiatives, which are inherently different from contemporary hydraulic fine-tuning measures. It outlines the contours of the modern bottom-up approach and concludes with some of its advantages over conventional stabilization methods.

Suggested Citation

  • Pavlina Tcherneva, 2014. "Reorienting fiscal policy: a bottom-up Approach," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 37(1), pages 43-66.
    • Handle: RePEc:mes:postke:v:37:y:2014:i:1:p:43-66
    DOI: 10.2753/PKE0160-3477370105
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/PKE0160-3477370105
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/PKE0160-3477370105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas I. Palley, 2015. "IThe US Economy: From Crisis to Stagnation," IMK Working Paper 154-2015, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    2. Eckhard Hein, 2018. "Autonomous government expenditure growth, deficits, debt, and distribution in a neo-Kaleckian growth model," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 41(2), pages 316-338, April.
    3. Feng Lan & Weichao Xu & Weizeng Sun & Xiaonan Zhao, 2024. "From poverty to prosperity: assessing of sustainable poverty reduction effect of “welfare-to-work” in Chinese counties," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.
    4. John T. Harvey, 2016. "An Introduction to Post Keynesian Economics," The American Economist, Sage Publications, vol. 61(2), pages 140-156, October.
    5. Metehan COMERT, 2023. "Changing the Course of Tax Narrative: Relationality Sociality and Postcapitalist Possibilities," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 645-674, December.
    6. Jan Kregel, 2014. "Liquidity Preference and the Entry and Exit to ZIRP and QE," Economics Policy Note Archive 14-5, Levy Economics Institute.
    7. Pavlina R. Tcherneva, 2017. "Inequality Update: Who Gains When Income Grows?," Economics Policy Note Archive 17-1, Levy Economics Institute.
    8. Greg Hannsgen & Tai Young-Taft, 2015. "Inside Money in a Kaldor-Kalecki-Steindl Fiscal Policy Model: The Unit of Account, Inflation, Leverage, and Financial Fragility," Economics Working Paper Archive wp_839, Levy Economics Institute.
    9. Esteban Cruz-Hidalgo & Dirk H. Ehnts & Pavlina R. Tcherneva, 2019. "Completing the euro: The euro treasury and the job guarantee," Revista de Economia Critica, Asociacion de Economia Critica, vol. 27, pages 100-111.
    10. Gary Mongiovi, 2015. "Piketty on Capitalism and Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(4), pages 558-565, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:37:y:2014:i:1:p:43-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MPKE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.