Modern Perspectives on Stabilization Policies


The present paper describes recent research on two central themes of Keynes' General Theory: (i) the social waste associated with recessions, and (ii) the effectiveness of fiscal policy as a stabilization tool. The paper also discusses some evidence on the extent to which fiscal policy has been used as a stabilizing tool in industrial economies over the past two decades.
Published as: Demand for Higher Education Programs: the Impact of the Bologna Process in CESifo Economic Studies , Vol. 54, No. 2, 229--247, January, 2008