 Fiscal policy and the job guaranteeWilliam F. Mitchell () and
Warren B. Mosler
Australian Journal of Labour Economics (AJLE), 2002, vol. 5, issue 2, 243-259 Abstract: Most OECD economies have suffered from persistently high unemployment since the mid-1970s as a result of demand deficiencies promoted by inappropriate fiscal and monetary policy. Governments have failed to understand the opportunities that they have as the issuer of the currency. In this paper, a framework for analysing these opportunities is presented. We compare two buffer-stock means of stabilising the price level: (a) the NAIRU approach, which uses a buffer stock of unemployed; and (b) the Job Guarantee, which is an open ended, fixed wage buffer stock of employed workers. The government offers a fixed wage to anyone willing and able to work, and allows market forces to determine the total quantity of government spending. This option is available to the government as the monopoly issuer of fiat currency. Keywords: Macroeconomics; employment; unemployment; wages; wage indexation Financial markets and the macroeconomy Comparative or joint analysis of fiscal and monetary policy; stabilization policy (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:5:y:2002:i:2:p:243-259 Access Statistics for this article More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC. |
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