Garrison's Capital-Based Macroeconomics: The Role of Deficit, Credit Control and Taxation

Carmelo Ferlito

MPRA Paper from University Library of Munich, Germany

Abstract: It could be quite simple to quite simple to argue that, in the realm of the Austrian School of Economics, public finance plays no role. However, the Austrian perspective is very wide and, starting from Hayek, it is possible to trace a path that arrives to Roger Garrison. Garrison’s capital-based macroeconomics is the attempt to write a new general macroeconomics founded on time, expectations and capital. Starting from that basic graphic tool called Hayek’s triangle, Garrison tries to verify which instruments, in the field of political economy, are consistent with a sustainable growth. He considers the following cases: deficit finance, deficit spending (inert government projects, nationalized industries, infrastructures) and tax reform, recognizing a role to fiscal policy, but stressing the preference for a general institutional change.

Keywords: Fiscal Policy; Monetary Policy; Hayek; Garrison; Capital Structure. (search for similar items in EconPapers)
JEL-codes: B25 B31 B53 E32 E63 (search for similar items in EconPapers)
Date: 2011-06-25
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Citations: View citations in EconPapers (2)

Published in Public Finance: Lessons from the Past and Effects on the Future (2012): pp. 105-122

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67747

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