International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.5, No.2, Jun. 2019, Pub. Date: May 28, 2019
A Kind of Neither Keynesian Nor Neoclassical Model (9): Equilibrium Between Quantity and Quality of Resources Utilization
Pages: 111-124 Views: 362 Downloads: 181
Authors
[01] Zhan Zhan, Faculty of Economics and Business, KU Leuven, Leuven, Belgium.
[02] Mingan Zhan, Business School, Yunnan University, Kunming, China.
Abstract
Inflation has the dual role of reflecting changes in the amount of resources utilization and predicting currency depreciation. Deflation is a typical manifestation of insufficient resources utilization. Compared with monetary policy alone, fiscal policy is more conducive to improving the level of economic resources utilization in quantity before the quantity and quality of resources utilization are not balanced. A money supply method that is conducive to economic operation to get rid of the liquidity trap state is to clarify the newly added currency of the central bank as a coinage tax and hand it over to Treasury for use. It can manage the insufficient quantity of resource utilization caused by excessive loose monetary policy without affecting the market allocation of resource utilization. This way of integrating monetary policy into fiscal policy or integrating fiscal policy into monetary policy, although there is a risk of triggering “currency inflation”, it can be controlled within the level of people's willingness to accept under the scientific control mechanism. This paper envisages the specific operation of this "monetary fiscal policy" or "fiscal monetary policy".
Keywords
Quantity of Resource Utilization, Quality of Resource Utilization, Inflation, Fiscal Policy, Monetary Policy
References
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[08] Zhan, M. A. and Zhan, Z. (2019) A Kind of Neither Keynesian Nor Neoclassical Model (8): Equilibrium between Fictitious and Substantial Economy. International Journal of Economics and Business Administration, Vol. 5, No. 2, 2019, pp. 55-67, http://www.aiscience.org/journal/ijeba.
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