The macroeconomic effects of covid-19:the imperative need for a Keynesian solution
A very severe recession has hit the global economy in the wake of covid-19. The exact magnitude of this shock is uncertain, but many believe that the setback in GDP will be on a scale similar to, if not worse than, the first years of the Great Recession. As such, there is an imperative need for poli...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Association Recherche & Régulation
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| Series: | Revue de la Régulation |
| Subjects: | |
| Online Access: | https://journals.openedition.org/regulation/18405 |
| _version_ | 1797314894883717120 |
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| author | Mikael Randrup Byrialsen Finn Olesen Mogens Ove Madsen |
| author_facet | Mikael Randrup Byrialsen Finn Olesen Mogens Ove Madsen |
| author_sort | Mikael Randrup Byrialsen |
| collection | DOAJ |
| description | A very severe recession has hit the global economy in the wake of covid-19. The exact magnitude of this shock is uncertain, but many believe that the setback in GDP will be on a scale similar to, if not worse than, the first years of the Great Recession. As such, there is an imperative need for policy actions of a Keynesian nature, as have already been implemented in many countries. Given the atypical circumstances of the crisis, a new type of supply-side-oriented Post-Keynesian policy should be followed. The purpose of this policy should be to support the firms, in order to prevent them from destroying their production capacity and to move forward with the ecological transition. This paper uses the case of Denmark to present a demand-driven Post-Keynesian stock-flow consistant (SFC) model with labour market restrictions based. It highlights some aspects of the negative economic impact of covid-19 on the Danish economy and of the policies adopted by the Danish Parliament. |
| first_indexed | 2024-03-08T02:52:48Z |
| format | Article |
| id | doaj.art-1b136ec3669042cbbf5b6edc1aefa02a |
| institution | Directory Open Access Journal |
| issn | 1957-7796 |
| language | English |
| last_indexed | 2024-03-08T02:52:48Z |
| publisher | Association Recherche & Régulation |
| record_format | Article |
| series | Revue de la Régulation |
| spelling | doaj.art-1b136ec3669042cbbf5b6edc1aefa02a2024-02-13T13:03:02ZengAssociation Recherche & RégulationRevue de la Régulation1957-77962910.4000/regulation.18405The macroeconomic effects of covid-19:the imperative need for a Keynesian solutionMikael Randrup ByrialsenFinn OlesenMogens Ove MadsenA very severe recession has hit the global economy in the wake of covid-19. The exact magnitude of this shock is uncertain, but many believe that the setback in GDP will be on a scale similar to, if not worse than, the first years of the Great Recession. As such, there is an imperative need for policy actions of a Keynesian nature, as have already been implemented in many countries. Given the atypical circumstances of the crisis, a new type of supply-side-oriented Post-Keynesian policy should be followed. The purpose of this policy should be to support the firms, in order to prevent them from destroying their production capacity and to move forward with the ecological transition. This paper uses the case of Denmark to present a demand-driven Post-Keynesian stock-flow consistant (SFC) model with labour market restrictions based. It highlights some aspects of the negative economic impact of covid-19 on the Danish economy and of the policies adopted by the Danish Parliament.https://journals.openedition.org/regulation/18405covid-19global recessionSFC modellingfiscal policy |
| spellingShingle | Mikael Randrup Byrialsen Finn Olesen Mogens Ove Madsen The macroeconomic effects of covid-19:the imperative need for a Keynesian solution Revue de la Régulation covid-19 global recession SFC modelling fiscal policy |
| title | The macroeconomic effects of covid-19:the imperative need for a Keynesian solution |
| title_full | The macroeconomic effects of covid-19:the imperative need for a Keynesian solution |
| title_fullStr | The macroeconomic effects of covid-19:the imperative need for a Keynesian solution |
| title_full_unstemmed | The macroeconomic effects of covid-19:the imperative need for a Keynesian solution |
| title_short | The macroeconomic effects of covid-19:the imperative need for a Keynesian solution |
| title_sort | macroeconomic effects of covid 19 the imperative need for a keynesian solution |
| topic | covid-19 global recession SFC modelling fiscal policy |
| url | https://journals.openedition.org/regulation/18405 |
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