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Macroeconomic Policy and Abba Lerner’s System of Functional Finance *
Author(s) -
Hart Neil
Publication year - 2011
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2011.00117.x
Subject(s) - economics , relevance (law) , financial crisis , keynesian economics , doctrine , deliberation , macroeconomics , political science , politics , law
Lerner’s system of functional finance, said to have provided the logical framework for Keynes’s policy, has largely been neglected in the recent literature and policy deliberation. This paper considers the relevance of Lerner’s system and at the same time provides a critique of the opposing “sound finance” doctrine that governs much of the current thinking on macroeconomic policy making in the shadows of the Global Financial Crisis (GFC).