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Beyond Mainstream Macroeconomics

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New Challenges for Macroeconomic Policies

Abstract

This chapter discusses the contributions of so-called orthodox macroeconomics to three topics studied in the previous chapters, that is, the causes of inflation, the role of monetary policy and its interaction with fiscal policy, and finally alternative approaches to sustainable growth. We highlight the role of the institutions of capitalism in accounting for different inflationary regimes, depending on whether the latter is regulated or driven by competitive forces. The theses of modern monetary theory are also examined. We summarize the main ideas and discuss some key proposals, such as the monetary financing of public deficits or the existence of a buffer stock of government jobs to keep economies at full employment. Finally, we summarize the contributions of the different currents of thought on ecological macroeconomics: the theory of degrowth and post-growth economics, and Green New Deal policies.

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  1. Sciences Po Aix, Aix-en-Provence, France

    Gilles Dufrénot

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Dufrénot, G. (2023). Beyond Mainstream Macroeconomics. In: New Challenges for Macroeconomic Policies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-15754-7_8

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  • DOI: https://doi.org/10.1007/978-3-031-15754-7_8

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-031-15753-0

  • Online ISBN: 978-3-031-15754-7

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