The goal of economists and their profession is to promote the general welfare of the community. A sound and active fiscal policy is an essential element for promoting general welfare and stability through investment, full employment, and broadly based economic activity.
A sound and active fiscal policy:
1. Does not seek a continuously balanced overall public budget
2. Compensates for inadequate or excessive private sector demand by a countercyclical management of current expenditure to maintain the economy near full potential
3. Expands the role of automatic stabilizers including support for the unemployed and a counter-cyclical tax structure
4. Incorporates public investment to increase the potential growth rate and "crowd in" private investment in areas of priority
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V Chick, A Pettifor, & G Tily, July 2010
Fiscal consolidation does not ‘slash’ the debt, but contributes to it. Prof. Chick and Pettifor examine a century’s worth of macroeconomic evidence to argue that, contrary to conventional wisdom, we need to ‘spend away the debt’.
PRIME provides readers with regular short briefings on newly available data concerning the UK, European or international economy. These updates cover issues such as GDP, employment, debt and credit, and inflation.
We aim to focus on developments that are significant from a macroeconomic perspective.
G Tily, October 2010
In this revised edition, Geoff Tily argues that the economics profession has distorted and betrayed Keynes's legacy. In virtually all interpretations – especially that taught to students – Keynes is portrayed as concerned only with government expenditure as a means to cure economic crisis. Yet his prescription concerned monetary not fiscal policy.