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Garrison's Capital-Based Macroeconomics: The Role of Deficit, Credit Control and Taxation

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  • Ferlito, Carmelo

Abstract

It could be quite simple to quite simple to argue that, in the realm of the Austrian School of Economics, public finance plays no role. However, the Austrian perspective is very wide and, starting from Hayek, it is possible to trace a path that arrives to Roger Garrison. Garrison’s capital-based macroeconomics is the attempt to write a new general macroeconomics founded on time, expectations and capital. Starting from that basic graphic tool called Hayek’s triangle, Garrison tries to verify which instruments, in the field of political economy, are consistent with a sustainable growth. He considers the following cases: deficit finance, deficit spending (inert government projects, nationalized industries, infrastructures) and tax reform, recognizing a role to fiscal policy, but stressing the preference for a general institutional change.

Suggested Citation

  • Ferlito, Carmelo, 2011. "Garrison's Capital-Based Macroeconomics: The Role of Deficit, Credit Control and Taxation," MPRA Paper 67747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67747
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    References listed on IDEAS

    as
    1. Roger W. Garrison, 2004. "A Roundabout Approach to Macroeconomics: Some Autobiographical Reflections," Chapters, in: Michael Szenberg & Lall Ramrattan (ed.), Reflections of Eminent Economists, chapter 11, Edward Elgar Publishing.
    2. R. W. Garrison, 1997. "The Lachmann Legacy: An Agenda for Macroeconomics," South African Journal of Economics, Economic Society of South Africa, vol. 65(4), pages 214-223, December.
    3. Roger W. Garrison, 1986. "Hayekian Trade Cycle Theory: A Reappraisal," Cato Journal, Cato Journal, Cato Institute, vol. 6(2), pages 437-459, Fall.
    4. Carilli, Anthony M & Dempster, Gregory M, 2001. "Expectations in Austrian Business Cycle Theory: An Application of the Prisoner's Dilemma," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 14(4), pages 319-330, December.
    5. Garrison, Roger W., 1984. "Time and money: The universals of macroeconomic theorizing," Journal of Macroeconomics, Elsevier, vol. 6(2), pages 197-213.
    6. Roger W. Garrison, 1992. "The Limits of Macroeconomics," Cato Journal, Cato Journal, Cato Institute, vol. 12(1), pages 165-178, Spring/Su.
    7. Garrison, Roger W, 1984. "Deficits and Inflation: A Comment," Economic Inquiry, Western Economic Association International, vol. 22(4), pages 593-596, October.
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    Cited by:

    1. Ferlito, Carmelo, 2015. "Malaysia NAP: More Shadows than Lights," MPRA Paper 67714, University Library of Munich, Germany.
    2. Ferlito, Carmelo, 2013. "Bruno Leoni and the Socialist Economic Calculation Debate," MPRA Paper 67745, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fiscal Policy; Monetary Policy; Hayek; Garrison; Capital Structure.;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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