Reflections on Aspects of Macroeconomic Policies in the Spirit of Geoff Harcourt

Abstract

This article opens with some remarks on Geoff Harcourt’s thoughts on macroeconomic policies (broadly conceived). This is followed by comments on some recent developments within the scope of fiscal policy. The article moves on to aspects of monetary policy and central banks, with particular reference to the ‘independence’ of central banks and inflation targeting. There are then relatively brief discussions on three policy areas on which policies pursued by the central banks have some, albeit often limited, impacts, namely, financial stability, inequality, and climate change and environmental damage. The article considers alternative approaches to controlling inflation in view of the failures of the inflation targeting regime (and Geoff’s interest in incomes policy).