@inbook{051dd9c7356b4a028f60ffd9ba134501,
title = "Rethinking Economic Policy in the Age of Financialization: Why the Barro-Ricardo Theory Cannot Make Sense",
abstract = "The 2008 crisis brought forth a rethinking of the role of economic policies. We would like to analyze a specific point of this debate: the effect of financialization on fiscal policy. In doing so, we find it useful to analyze the debate on the Barro-Ricardo equivalence (BRE), which, since the 1970s, has played an important role in molding the economic policies that fostered the crisis. The original Barro article (1974) attacked counter-cyclical policies as futile, claiming that they could not boost the economy due to private investment crowding-out. We will try to explain why the traditionally understood assumptions of this theory and its conclusions are not helpful for analyzing the contemporary economy before finally offering alternative interpretations.",
keywords = "Barro Ricardo equivalence, equivalenza ricardiana, financialization, finanziarizzazione, Barro Ricardo equivalence, equivalenza ricardiana, financialization, finanziarizzazione",
author = "Giuseppe Mastromatteo and Lorenzo Esposito",
year = "2017",
language = "English",
volume = "2017",
series = "BINZAGR INSTITUTE FOR SUSTAINABLE PROSPERITY POLICY NOTES",
publisher = "[Granville Ohio]: Binzagr Institute for Sustainable Prosperity, [2014]-",
pages = "1--6",
booktitle = "Binzagr Institute for Sustainable Prosperity",
}