Chapter 12 presents the technical analysis of both expansionary/contractionary fiscal/monetary policy or their policy mix in the framework of Keynesian Theory. As you’ll see in Chapter 13, both Fiscal and Monetary Policies are used to target aggregate expenditure (called aggregate demand when price level is allowed to float)so as to change the equilibrium level of income.Remember, all the concl...

Is there a role for anonymous markets in which trades cannot be monitored by the government? We study an economy in which agents have private information and a benevolent government controls redistributive tax policy. While unrestricted access to anonymous markets reduces the set of policy instruments available to the government in general, it also limits the scope of inefficient redistributive...

Investments in the extension of health insurance coverage, the strengthening of public health services, as well as primary care and better hospitals, highlights the emerging role of healthcare as part of China’s new growth regime, based on an expansion of services, and redistributive policies. Such investments, apart from their central role in terms of relief for low-income people, serve to reb...

Few individuals are more closely associated with the project of European Economic Monetary Union (EMU) than Jacques Delors.1 As French finance minister between 1981 and 1984, Delors played a decisive role in le tournant de la rigueur, the economic U-turn that saw President François Mitterrand abandon expansionary policies in favour of fiscal consolidation, market reforms, and continued membersh...

This paper examines the bank lending channel, which considers how monetary authority actions affect the variation of loans. We focus on the BRICS (Brazil, Russia, India, China and South Africa) totalizing 1254 banks from five countries in the period 2000-2012 (totalizing 13 years). The empirical results show that the effect of money supply growth on the growth of loans is non-linear and inverte...

Measures of symbolic racism (SR) have often been used to tap racial prejudice toward Blacks. However, given the wording of questions used for this purpose, some of the apparent effects on attitudes toward policies to help Blacks may instead be due to political conservatism, attitudes toward government, and/or attitudes toward redistributive government policies in general. Using data from nation...

The regressive nature of consumption taxes poses a challenge to partisan theory. Using data for up to 20 OECD countries in the period 1970-2003 this article aims to explore the question of whether the idea that social democratic governments typically have to compromise on policy goals and core constituency interests to make themselves more appealing to the median voter necessitates the use of r...

Central banks have been pursuing an expansionary monetary policy since before the pandemic, although health and economic crisis of COVID-19 has boosted asset purchase programmes. After Great Recession, a new phase began, characterised by low interest rates liquidity injections. These policies spilled over into financial markets are leading to higher inflation. stabilised situation in short term...