Fiscal Policy In The Macroeconomic Policy Mix: A Critique Of The New Consensus Model And A Comparison Of Macroeconomic Policies In France, Germany, The UK And Sweden From A Post-Keynesian Perspective

The New Consensus approach in macroeconomics is criticized for its exclusive but unwarranted reliance on stabilizing monetary policies, for its ill-designed approach to the role of wages and wage policies, and for its complete neglect of fiscal policies. From a Post-Keynesian perspective, it is argued that fiscal policies play an important role for macroeconomic development, albeit the whole macroeconomic policy-mix of monetary, fiscal and wage policies as well as open economy conditions should be considered.