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GROWTH POLICY IN THE SPIRIT OF STEINDL AND KALECKI
Author(s) -
Guger Alois,
Marterbauer Markus,
Walterskirchen Ewald
Publication year - 2006
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2006.00248.x
Subject(s) - economics , mainstream , deregulation , consolidation (business) , investment (military) , public investment , public sector , neoclassical economics , market economy , labour economics , economy , public economics , public fund , political science , law , accounting , politics
There are large differences between Steindl’s ideas on growth policies and the Brussels/Paris consensus. Steindl called for innovation and education policies, whereas the mainstream today rather favours deregulation and privatization. Steindl stressed the positive demand‐side effects of the public sector and the contribution of lower household savings and anticyclical policies to growth. The economic mainstream praises the efficiency effects of a declining public sector, the importance of high savings for investment and warns of active anticyclical policies being an impediment to budget consolidation. Steindl and the Keynesians regarded the labour market situation as a consequence of economic growth. Today many economists see low growth as a result of labour market rigidities.