Macroeconomic policy and the future of capitalism
Subtitle: the revenge of the rentiers and the threat to prosperity
By: John Smithin.
Publisher: E. Elgar
Published: 1996
Place of publication: Cheltenham, UK; Brookfield, Vt., US
Language: eng
Number of pages: 150
Subjects: Monetary policy -- History -- 20th century.; Keynesian economics -- History -- 20th century.; Capitalism -- History -- 20th century.; Macroeconomics -- History -- 20th century.; International finance -- History -- 20th century.; Economic history -- 20th century.
Description: Macroeconomic Policy and the Future of Capitalism addresses the revolution in macroeconomic policy of the last quarter of the 20th century and the movement away from concerns with employment and growth in favour of financial variables such as inflation or exchange rates.

John Smithin argues that this 'financial reaction' in macroeconomic policy is the result of a distinct shift in political power in favour of financial or 'rentier' interests, and away from both labour and manufacturing business. The outcome is a regime in which the real rate of return to financial capital is persistently higher than it was in the relatively prosperous years between the end of World War II and the mid-1970s, but economic performance is persistently worse.

Professor Smithin recommends drastic changes in attitude, in particular in the conduct of monetary policy, if a more secure prosperity is to be restored in the 21st century. Macroeconomic Policy and the Future of Capitalism is an accessible, highly readable account of macroeconomic policy in the industrial nations which cuts through the complex mathematics and obscure jargon of most books on economics to deal with real issues.
Notes: Includes bibliographical references (p. 134-143) and index.