Fiscal policy, the Sraffian supermultiplier and functional finance

Arbeitspapier

Sraffian supermultiplier models (SSM) try to identify autonomous components of demand. The most plausible candidate is government consumption. Descriptively, however, government consumption does not grow at a constant rate, and prescriptively there is no justification for keeping constant the growth rate of government consumption, irrespective of economic performance. An active fiscal policy guided by principles of functional finance can produce more powerful stabilization, avoid overheating and excessive utilization rates, and secure faster adjustments of the growth rate towards its target level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2020-12

Classification and Topics

• Classification: Wirtschaft
• Subject: Öffentlicher Konsum ; Finanzpolitik ; Wachstumstheorie ; Neo-Ricardianische Schule

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Skott, Peter ; Santos, Júlio Fernando Costa ; Da Costa Oreiro, José Luís
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/227903
• Last update: 10.03.2025, 11:43 AM CET