Theoretical Grounds of Public Finance Reform
Argumenta Oecomica Cracoviensia, No. 5, 2009
20 Pages Posted: 10 Mar 2010
Date Written: March 10, 2010
Abstract
The economy operates simply and naturally. Employees produce products and services, which function as pay for their labour and other input factors. A huge problem arises here: how does society work collectively and in doing so reap the benefits of specialisation and cooperation? How should the effects of the work be divided so that they are proportionate to the contribution of individuals? But the right solution in this agenda is possible because we are now able to measure the potential of humans’ ability to do work and an employees’ real productivity, which determines their contribution to common wealth. Knowing that money is created as a result of work done, we may begin to think differently about the monetary economy in order to benefit from its particular features and capabilities.
Keywords: money theory, labour productivity, central bank theory
JEL Classification: A1, E4, E5
Suggested Citation: Suggested Citation