1 / 3

Dijon 2009 Stability conditions of a capitalist economy

Dijon 2009 Stability conditions of a capitalist economy. 1/ Full employment should be the unique principle of State intervention 2/ The State should impose the highest share of labour in the distribution of wealth 3/ Sufficient ratio of sound public assets over private assets

jeremy-boone
Download Presentation

Dijon 2009 Stability conditions of a capitalist economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Dijon 2009 Stability conditions of a capitalist economy • 1/ Full employment should be the unique principle of State intervention • 2/ The State should impose the highest share of labour in the distribution of wealth • 3/ Sufficient ratio of sound public assets over private assets • 4/ The State should not be constrained in its expenditures • 5/ No fixed exchange rate in order to have no foreign constraint

  2. Dijon 2009 Rules of economic governance for positive action • Rule 1:Implement at once a strong growth of long-run public investments • Rule 2: Finance public investments by planned deficits not out of borrowing from savings • Rule 3: The State must issue debt for public investment in its own currency and fix the interest rate of this debt at a very low level • Rule 4: Impose high enough wages consistent with an equitable distribution of wealth • Rule 5: Public reconstructionmust include employment of last resort (ELR) • Rule 6: As Rules 1 to 5 are implemented do not impose the least restraint on consumption out of rising taxes

  3. Dijon 2009 Rules of economic governance for positive action • Rule 7: Do not fear inflation no more than the foreign constraint • Rule 8: The State must not tax to get income to spend but to prevent evil animal spirits ie: delocalisation, speculation, predatory behaviour… • Rule 9: For emerging countries intelligent protectionism and capital controls are required to pledge to a non fixed exchange rate. • Rule 10: State deficits should not be used to save banks from their accounting losses but to nationalize them at least for some time. Central banks should play the leading role in the supply of money for public investments.

More Related