Theoretical Foundations of Macroeconomic Policy: Growth, productivity and public finance, 1st Edition (Paperback) book cover

Theoretical Foundations of Macroeconomic Policy

Growth, productivity and public finance, 1st Edition

Edited by Giovanni Di Bartolomeo, Enrico Saltari


198 pages | 28 B/W Illus.

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The recent economic events driven by the great financial crisis of 2007-08 has challenged some "dogma", highlighting various limits and drawbacks of current paradigms. The crisis showed the limitations of monetary policy and led to a revaluation of what levels of public debt can be considered safe. This volume aims to refresh the debate on some important long-run macroeconomic issues from new and fresh perspectives.

Theoretical Foundations of Macroeconomic Policy raises a number of questions relating to the challenges faced by macroeconomic theory and policies. The common line is the long run and policy perspective. The first part of the book is devoted to the theory of growth and productivity. The second part concentrates on long-run effects of fiscal and monetary policy. Specifically, topics investigated by the international range of authors are the theory of optimal growth, the productivity policies and production function estimations, demand- vs. supply- driven growth, optimal debt default and the incompleteness of financial markets, the long-run optimal inflation target and its relationship with public finance, the long term effects of government budget constraints on growth, and effect on optimal policies in non-market clearing environment.

The book will be of interest to postgraduates, researchers, and academics studying macroeconomics and fiscal policies.

Table of Contents



Part I –Theories

1 Optimal growth theory revisited

2 Continuous-time modelling

3 Demand factors and GDP growth

4 LAMP & banks balance sheet constraints

5 Secular Stagnation

Part II –Policies

6 Public finance and inflation

7 Government budget constraints

8 Productivity as an intermediate target

9 FX reserves for emerging economies

10 Labor market policies

About the Editors

Giovanni Di Bartolomeo teaches economic policy and monetary economics at the Sapienza University of Rome, Italy.

Enrico Saltari teaches economics and financial economics at the Sapienza University of Rome, Italy.

About the Series

Routledge Frontiers of Political Economy

In recent years, there has been widespread criticism of mainstream economics. This has taken many forms, from methodological critiques of its excessive formalism, to concern about its failure to connect with many of the most pressing social issues. This series provides a forum for research which is developing alternative forms of economic analysis. Reclaiming the traditional 'political economy' title, it refrains from emphasising any single school of thought, but instead attempts to foster greater diversity within economics.

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Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Economics / Macroeconomics
BUSINESS & ECONOMICS / Economics / General