Özet:

The central idea of functional finance is that while assessing fiscal policy the impact of fiscal actions on the economy should be considered and the priority of fiscal policy should be full employment and price stability, without using balanced budget as a constraint. Keynesians on the other side, tried to eliminate involuntary unemployment by basing on the linkages between full employment and fiscal policy. These linkages have been abandoned by neoliberal policies due to their inflationary impacts and state obligations regarding unemployment and underemployment were also terminated. The idea of “personal failure” has dominated “system failure” with the argument that insufficient demand in the economy constraints employment and results in involuntary unemployment. However, the market failure in coping with unemployment and poverty indicates the necessity of state intervention. According to the Post-Keynesian view, to achieve full employment the state should either increase aggregate demand via investment and so the growth and employment will rise, or should create jobs as the “employer of last resort”for the ones who want to work, and so create infinitely elastic labor demand without any expectation of profit

Anahtar Kelimeler: