The Goals of Macroeconomic Policy

Business & Finance, Economics
Cover of the book The Goals of Macroeconomic Policy by Martin Prachowny, Taylor and Francis
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Author: Martin Prachowny ISBN: 9781134841431
Publisher: Taylor and Francis Publication: November 12, 2012
Imprint: Routledge Language: English
Author: Martin Prachowny
ISBN: 9781134841431
Publisher: Taylor and Francis
Publication: November 12, 2012
Imprint: Routledge
Language: English

Politicians win elections by promising 'Jobs! Jobs! Jobs!' but in practice these promises quickly fall by the wayside. The Goals of Macroeconomic Policy asks why. It begins with the observation that there is no convincing economic argument that full employment should be the primary objective of economic policy in all circumstances. In the light of this it examines whcy policy has failed so consistantly. It explains this by a theory of the labour market which shows why most workers are happy to operate in a way which militates against full employment. It then proceeds to analyse the rather dire consequences of this for the budget deficit.

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Politicians win elections by promising 'Jobs! Jobs! Jobs!' but in practice these promises quickly fall by the wayside. The Goals of Macroeconomic Policy asks why. It begins with the observation that there is no convincing economic argument that full employment should be the primary objective of economic policy in all circumstances. In the light of this it examines whcy policy has failed so consistantly. It explains this by a theory of the labour market which shows why most workers are happy to operate in a way which militates against full employment. It then proceeds to analyse the rather dire consequences of this for the budget deficit.

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