Maximum Government, Maximum Governance

Austerity, Fiscal consolidation, Fiscal discipline and Fiscal deficit targets have become the buzzwords of contemporary macroeconomic policy. By tracing the history of macroeconomic schools of thought, maximum government, maximum governance explores the origins, essence, shortcomings and deception of mainstream neoliberal Macroeconomics. Arguing that economies are financially constrained, neoliberal macroeconomics dislodged full employment as the target of policy replacing it with a low and stable inflation target. Monetary policy under the control of an independent central Bank became the primary instrument to assist free and globalized markets to propel economies towards full employment.