@inbook{8eff6037161842b49cc40ea776a01c3b,
title = "Look after employment, and the budget will look after itself",
abstract = "According to Keynes's General Theory of Employment, Interest and Money the private sector is not self-adjusting and it may get stuck in a position of unemployment equilibrium. The theoretical explanation can be found in his theory of effective demand, which is an equivalent to a theory of structural excess private savings. The mirror picture of the private sector is within a closed economy the public sector. To secure full employment the government has to run a deficit matching the private excess savings. In this case the public sector deficit could be financed automatically by private savings. On the other hand an expansionary monetary policy could facilitate a re-balancing process within the private sector and hereby make a relief to the government budget.",
keywords = "Active fiscal & monetary policy, Effective demand, Persistent unemployment equilibrium, Structural private surplus, Structural public deficit",
author = "Jesper Jespersen",
year = "2018",
month = aug,
day = "9",
language = "English",
isbn = "978-1-53614-026-2",
series = "Economic Issues, Problems and Perspectives",
publisher = "Nova Science Publishers",
pages = "119--138",
editor = "Noralv Veggeland",
booktitle = "Keynesian Policies: a New Deal in the European Narrative",
address = "United States",
}