scholarly journals Employer of Last Resort as a new ‘New Deal’: A few thoughts on Turkey

2021 ◽  
Author(s):  
Ilker Aslan
Keyword(s):  
Business Cycles ◽  
New Deal ◽  
Full Employment ◽  
Job Creation ◽  
Monetary Theory ◽  
Public Projects ◽  
Automatic Stabilizer ◽  
Employer Of Last Resort ◽  
Deficit Spending ◽  
Unemployment Problem

Modern Monetary Theory emerges as a plausible alternative to solve Turkey’s staggering unemployment problem. This proposed solution here is the introduction of job guarantee program, which produces a non-discretionary automatic stabilizer that fosters both price stability and full employment. As a monetary sovereign, Turkey has the capacity to use deficit spending to bring growth and provide full employment to the millions who are in involuntary unemployment. The goal here is to tame the business cycles without throwing millions into unemployment, which has social and economic ramifications. In the absence of job creation by the private sector, this can be achieved through the use of government, providing job guarantees and the state acting as an employer of last resort by creating public projects, which will be cyclically adjusted in order to achieve full employment. 

In Search of Employment Creation via Environmental Valorisation: Exploring a Possible Eco-Keynesian Future for Europe

1997 ◽  
Vol 29 (9) ◽  
pp. 1647-1661 ◽  
Author(s):  
R Hudson ◽  
P Weaver
Keyword(s):  
Economic Growth ◽  
Environmental Impacts ◽  
Full Employment ◽  
Job Creation ◽  
Living Standards ◽  
Rapid Economic Growth ◽  
Alternative Approach ◽  
Development Trajectory ◽  
Capitalist World ◽  
Unemployment Problem

By the mid-1970s it had become clear over much of the advanced capitalist world that rapid economic growth, profitable production, rising material living standards, and full employment had ceased to be simultaneously attainable objectives. Moreover, it was also clear that the mass economy had grave environmental impacts. We begin this paper by briefly considering this transition before going on to examine the nature of the contemporary unemployment problem and to evaluate current approaches to job creation. We go on to explore an alternative approach based upon a transition to a different development trajectory, to a more sustainable regime of accumulation and enabling a eco-Keynesian mode of regulation, that simultaneously addresses issues of job creation and environmental valorisation. The appropriate territorial basis of regulation within Europe is then discussed. Last, some conclusions are drawn and the sustainability of the alternative approach is discussed.

Is money the creation of the state or the market? (On the “modern monetary theory” as described in the textbook by W. Mitchell, L. R. Wray and M. Watts “Macroeconomics”)

2020 ◽  
pp. 121-134
Author(s):  
S. A. Andryushin
Keyword(s):  
Public Debt ◽  
Scientific Community ◽  
Full Employment ◽  
Term Effect ◽  
Scientific Concept ◽  
Monetary Theory ◽  
Left Wing ◽  
Medium Term ◽  
Short Term ◽  
Stimulation Of

In 2019, a textbook “Macroeconomics” was published in London, on the pages of which the authors presented a new monetary doctrine — Modern Monetary Theory, MMT, — an unorthodox concept based on the postulates of Post-Keynesianism, New Institutionalism, and the theory of Marxism. The attitude to this scientific concept in the scientific community is ambiguous. A smaller part of scientists actively support this doctrine, which is directly related to state monetary and fiscal stimulation of full employment, public debt servicing and economic growth. Others, the majority of economists, on the contrary, strongly criticize MMT, arguing that the new theory hides simple left-wing populism, designed for a temporary and short-term effect. This article considers the origins and the main provisions of MMT, its discussions with the mainstream, criticism of the basic tenets of MMT, and also assesses possible prospects for the development of MMT in the medium term.

scholarly journals Modern Monetary Theory: a criticism from the periphery

2018 ◽  
Vol 3 (2) ◽  
pp. 16 ◽  
Author(s):  
Rodrigo Vergnhanini ◽  
Bruno De Conti
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Full Employment ◽  
International Markets ◽  
Monetary Theory ◽  
Alternative Theory ◽  
International Liquidity ◽  
Critical View ◽  
Recent Debate ◽  
International Investors

<p>This paper presents the recent debate on modern monetary theory (MMT) and contributes to a critical view on its application to peripheral countries. MMT has been centered on both demystifying postulates of the ‘New Macroeconomic Consensus’ and offering an alternative theory to reach full employment with price stability. However, it has been criticized for assuming that constraints on domestic policies are generally self-imposed, not arising from international markets. Using the “international currency hierarchy” approach, this paper argues that peripheral countries, in the context of financial globalization, are not fully sovereign in determining its own macroeconomic policy. Our main argument is that currencies issued by peripheral countries do not fulfill money classical functions at the international level. Being hence illiquid at the international scenario, these peripheral currencies (and assets) are demanded by the international investors only in the quest for high returns; moreover, this demand depends on the “international liquidity preference” and the markets’ confidence in this country. Consequently, interest rates in peripheral countries tend to be higher and volatile. Additionally, the exchange rate is potentially under the pressure of this capital flows movements. Finally, monetary, fiscal and exchange policies in peripheral countries have constrains that are not considered by MMT.</p>

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