Monetary and fiscal policies as public goods: rethinking individual policies as well as their coordination for economic growth and employment

Strachman, Eduardo and Souza Fraga, Jefferson and Guidorzzi Girotto, Vitor (2025): Monetary and fiscal policies as public goods: rethinking individual policies as well as their coordination for economic growth and employment. Forthcoming in: ROCHON, Louis-Philippe; ROSSI Sergio & VALLET, Guillaume (2025) Monetary Policy and the Common Good. Cheltenham, UK: Edward Elgar. (2025)

Abstract

This chapter redefines monetary and fiscal policies through the lens of public goods, arguing that their non rival and economy wide benefits require coordinated management to foster inclusive economic growth and employment. Drawing on post Keynesian theory, it shows how money, as a social technology, and fiscal policy, through infrastructure and investment programmes, shape expectations, stimulate private investment, and enhance welfare. Integrating theoretical insights with historical and contemporary evidence, including the COVID 19 policy response, the chapter underscores the importance of strategic coordination to overcome uncertainty, stabilize long term investment and strengthen macroeconomic resilience. It challenges conventional approaches that treat policies in isolation, advocating instead their design as complementary instruments for sustainable development and shared prosperity.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fiscal policy; Infrastructure investment; Monetary policy; Policy coordination; Post Keynesian economics; Public goods.
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General; H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods; H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General

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