Resolving economic deadlock

Claus-Peter Pfeffer

MPRA Paper from University Library of Munich, Germany

Abstract: In the introductory chapter a novel economic policy is proposed which consists of a) 'virtualizing' debt (putting it on the Central Bank balance sheet) and b) reduce the money-multiplier by an implementation of a strong minimum reserving policy. The main part shows exposes a flaw in the concept of capital in neoclassical thinking, with special reference to Tobin's q-theory. This has the implication that neoclassical thinking - Keynesian and 'classical' - overstates investment activity and the tendency to full employment. The last two chapters - on China and the Nazi-Recovery - are empirical illustrations.

Keywords: Keynesianism; deficit spending; public debt; capital theory; monetary theory and policy (search for similar items in EconPapers)
JEL-codes: B22 D43 D53 E00 E11 E12 E40 E41 E44 (search for similar items in EconPapers)
Date: 2011-04-30
New Economics Papers: this item is included in nep-hme, nep-hpe and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32221

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