A Dirigisme Approach to a Monetary Policy Jobs Guarantee and the Green New Deal

Abstract

This article applies institutional analysis to H.R. Con. Res. 109, 2019 for the Green New Deal (GND) and a key section of the Federal Reserve Act to imagine new fiscal-monetary policy instrumentalities for community-driven economic transformation. Complementing this technical examination, dirigisme supplies philosophical grounding for the construction of a spatial Development Finance State model (DFS). The foundational program of the model is a monetary jobs guarantee (MJG) that redefines meaningful work as collateral for open labor market operations. GND mobilization advances beyond the buffer stock with communities securitizing their labor collateral to acquire direct financing for grassroots projects. To provide operational clarity, a thought experiment outlines a case study vision of this process juxtaposed with New Monetary Consensus utilization of DFS liquidity provisioning tools during the financial crisis. From this comparison, two design features improve DFS performance for the GND. First enhanced transaction transparency is achieved through digital ledger and spatial analysis technologies, while reflexivity between fiscal policy and local development goals emerges by engineering anchor institutions into the monetary architecture. Together these design features are hypothesized to democratically alter the proto-aesthetic of money and bring forth a political economy of care.

Keywords: Green New Deal, Development Finance State, Jobs Guarantee, Monetary Design

JEL Classification: B50, E02, P43