Neoclassical economists have traditionally focused on monetary policy strategies and largely neglected the details of their implementation. By contrast, the post-Keynesian tradition has incorporated monetary policy implementation for several decades as a core part of its critique of neoclassical models. This chapter describes ten principles underlying central-bank operations in general that one might consider to be ‘what every economist should know’. Many, if not most, of these principles are contrary to the standard neoclassical models and textbooks, and, with regard to the post-Keynesian literature, tend to favour the horizontalists’ view over the structuralists’ view.
Scott T. Fullwiler
L. Randall Wray, Flavia Dantas, Scott Fullwiler, Pavlina R. Tcherneva and Stephanie A. Kelton
Wray, Dantas, Fullwiler, Tcherneva and Kelton focus on guaranteed jobs through a public service employment programme for the United States, since generating good quality employment is necessary for economic recovery, redistribution and the future social sustainability of the country’s growth trajectory. The authors remind us that, in both developed and developing economies, a high level of employment is clearly one of the most important ways of mitigating inequality and alleviating poverty, given that public service employment raises wage incomes, boosts aggregate demand and counters deflationary pressures. In addition, decent work, which has social, civic and creative implications, is an essential feature of an inclusive society.