Bent Hansen's theory revolutionizes fiscal policy for full employment and stable economy
The article discusses Bent Hansen's theory of fiscal policy, which aims to use government spending and taxation to maintain full employment and stable prices. The theory uses a model with optimizing agents to analyze how fiscal policy can achieve these goals. It also explores different economic models to understand the effects of fiscal policy on the economy, including inflation and unemployment. The role of monetary policy in conjunction with fiscal policy is also examined, along with the feasibility of implementing these policies in practice.