Political Economy and the Supply of Macro Guidance

45 Pages Posted: 31 Oct 2016

See all articles by Giuseppe Eusepi

Giuseppe Eusepi

Sapienza University of Rome

Richard E. Wagner

George Mason University - Department of Economics; George Mason University - Mercatus Center

Date Written: October 30, 2016

Abstract

This is the second of a six chapters of the penultimate draft of a book titled Public Debt: An Illusion of Democratic Political Economy. This essay explores just who it is that supplies the macro guidance that is envisioned in the various macro theories. The answer to this question is of great significance for the political economy of public debt and fiscal policy. Where the two extreme points of answer regarding this question are some macro czar as an analytical convenience and “the people” as a democratic platitude, this essay takes a Machiavellian-inspired tack whereby the few dominate the many.

Keywords: fiscal policy; political realism; economic manipulation for political gain; use of knowledge within political process; individual vs. group action

JEL Classification: D72, E30, E62, H62

Suggested Citation

Eusepi, Giuseppe and Wagner, Richard E., Political Economy and the Supply of Macro Guidance (October 30, 2016). GMU Working Paper in Economics No. 16-43, Available at SSRN: https://ssrn.com/abstract=2861662 or http://dx.doi.org/10.2139/ssrn.2861662

Giuseppe Eusepi

Sapienza University of Rome ( email )

Via del Castro Laurenziano, 9
Rome, RM 00161
Italy
+39 06 49766955 (Phone)

Richard E. Wagner (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
334 Enterprise Hall
Fairfax, VA 22030
United States
(703) 993-1132 (Phone)

HOME PAGE: http://mason.gmu.edu/~rwagner/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://ppe.mercatus.org/scholars/richard-wagner

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