Originally published in 1971, this book uses the famous Tinbergen/Theil approach to the theory of economic policy, demonstrating the place of fiscal policy in a realistic policy context. The volume marries analytical developments in macroeconomics to the influence on the economy of the system of public finance. Attention is given to the problem co-ordinating fiscal policy with other policy instruments, notably monetary policy. A final chapter discusses the problems encountered in applying fiscal policy models to real situations.
Part 1: Macroeconomic Analysis of Fiscal Policy 1. The Scope of the Work 2. The Static Theory of Fiscal Policy: Closed Economy 3. The Static Theory of Fiscal Policy: Open Economy 4. Disaggregated Models with Budget Transactions Example1: Fiscal Policy and the Composition of Government Demand Example 2: Inter-regional Fiscal Policy 5. Fiscal Policy, Employment and the Price Level 6. Fiscal Policy and Economic Growth 7. Stabilization Policy in a Dynamic Setting Appendix to Part 1: A Simple Non-Linear Model of Fiscal Policy Part 2: Fiscal Policy and the Theory of Economic Policy 8. Policy Targets and Fiscal Instruments 9. Fiscal Policy and Constrained Maximization 10. From Theory to Practice Appendix A: Suggestions for Additional Reading Appendix B: The Main Symbols Used.
Biography
Alan Peacock and G. K. Shaw.
Original Review of The Economic Theory of Fiscal Policy:
‘Professor Peacock and Dr. Shaw not only have succeeded in setting out the basic elements of the theory of fiscal policy with great clarity but have also incorporated a number of the important post-Keynesian developments in macroeconomic theory.’ A. B. Atkinson, The Economic Journal, Vol 82, Issue 325 (1972).
