Fiscal Policy: A Potent Instrument

Authors

  • Philip Arestis
  • Malcolm Sawyer

Abstract

There has undoubtedly been a major shift within macroeconomic policy over the past two decades, from the pre-eminence of fiscal policy to that of monetary policy. The latter has  gained considerably in importance as an instrument of macroeconomic policy, whereas  the former is rarely mentioned in policy discussions anymore, except in the context of limiting its use. We argue in this short paper that fiscal policy remains a powerful instrument for regulating the level of aggregate demand.

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Published

2004-10-01

How to Cite

Arestis, P., & Sawyer, M. (2004). Fiscal Policy: A Potent Instrument. The New School Economic Review, 1(1). Retrieved from https://nsereview.org/index.php/NSER/article/view/5

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