The Limits of Fiscal Policy

  • Anthony J. Makin

Table of contents

  1. Front Matter
    Pages i-xiii
  2. Anthony J. Makin
    Pages 1-14
  3. Anthony J. Makin
    Pages 15-29
  4. Anthony J. Makin
    Pages 31-44
  5. Anthony J. Makin
    Pages 45-56
  6. Anthony J. Makin
    Pages 57-71
  7. Anthony J. Makin
    Pages 73-87
  8. Anthony J. Makin
    Pages 89-100
  9. Anthony J. Makin
    Pages 101-107
  10. Back Matter
    Pages 109-121

About this book


This book presents alternative macroeconomic perspectives, primarily open economy, on the limitations of discretionary fiscal policy, with a focus on government spending.  Following an overview on the post-crisis Keynesian revival and of the macro-foundations needed for subsequent analysis, different perspectives are expounded that highlight the failings of fiscal activism. These perspectives include extended loanable funds analysis, an expenditure-output related model incorporating money and exchange rates, and a dependent economy framework. The approaches are used to examine investment and net export crowding out effects and their implications for national income, and are then adapted to show the macroeconomic impact of different fiscal consolidation measures, revealing that the nature of fiscal repair is critical. A concluding chapter evaluates the nexus between budgetary policy and confidence, summarises the key failings of fiscal activism, and suggests fiscal policy goals. 

The book will appeal to university lecturers and researchers in macroeconomics and economists working in government and the private sector.


global financial crisis fiscal activism economic growth monetary policy Keynes

Authors and affiliations

  • Anthony J. Makin
    • 1
  1. 1.Griffith UniversityGold CoastAustralia

Bibliographic information

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