Pavlina Tcherneva - Bottom Up Fiscal Policy: Direct Employment of the Unemployed

Palena, a professor of economics, discusses her grant on reorienting fiscal policy with a bottom-up approach. She critiques the traditional trickle-down economics and advocates for a direct employment policy. Her long-standing interest in fiscal policy stems from her college years, influenced by Keynesian economics. Palena balances academic research with policy advocacy, aiming to impact both fields. She emphasizes teaching Keynes and Minsky to her students, fostering engagement and understanding of economic theories.

What is the main critique Palena has about the trickle-down approach in fiscal policy?

• It fails to address unemployment directly.

• It focuses too much on tax cuts for the wealthy.

• It only benefits large corporations.

• It increases government spending excessively.

According to Palena, what are the two main issues that need to be addressed by fiscal policy?

• Tax evasion and corporate fraud

• Public debt and budget deficits

• Inflation and interest rates

• Unemployment and income inequality

How does Palena's bottom-up approach differ from traditional fiscal policies?

• It prioritizes cutting government spending.

• It relies on increasing exports.

• It aims to create growth through direct employment.

• It focuses on reducing taxes for businesses.

What is the primary goal of Palena's bottom-up approach to fiscal policy?

• To improve employment and income distribution

• To reduce inflation

• To cut government spending

• To increase exports

What inspired Palena to pursue her research on employment issues?

• Her experience as an investment banker

• Her interest in corporate finance

• Her college thesis on full employment

• Her work with policymakers

Where did Palena work before pursuing her PhD?

• At a government agency

• At a financial institution

• At the Center for Full Employment

• At a multinational corporation

What is the focus of the senior seminar Palena teaches at Franklin and Marshall College?

• Macroeconomics with emphasis on Keynes and Minsky

• Microeconomic theory

• History of economic thought

• International trade