Reorienting Fiscal Policy: A Bottom Up Approach

This research project offers a theoretical and empirical reassessment of alternative fiscal policy actions to tease out their advantages and disadvantages.

Over 70 years of fiscal activism have not been able to address what Keynes called the two outstanding faults of society, namely our failure to produce and maintain a close approximation to full employment and to improve the income distribution in the economy. This project argues that fiscal policy, as is currently practiced, largely undermines these two objectives and addresses the foundational question of what shape and form fiscal policy must take to generate better socio-economic outcomes. The project offers specific policy proposals that marry the objectives of tight full employment, better income distribution, and adequate public goods provisioning.