Economic analysis of legislation of National Fiscal Discipline Law—On the basis of Keynesian economics
Date Issued
2016
Date
2016
Author(s)
Chen, Chien—Yu
Abstract
This essay raises the fundamental question about the draft version of National Fiscal Discipline Law through the method of economic analysis of law --that is to say, this research mainly focuses on the argument over the underlying essence of economic theory of draft version of National Fiscal Discipline Law, not on legal hermeneutics and Interpretation of Justices of the Constitutional Court --and claims that the National Fiscal Equilibrium Law should be legislated on the basis of Post-Keynesian economics. This research has two levels of legal issues: It is the first-level that examines the present Budge Law and Public Debt Law why the legal norms are uncertain--that is, the so-called indefinite legal concepts--and extends the legal issue concerning whether the National Fiscal Discipline Law should be legislated. It is the second-level that queries whether the framework of the present draft version of National Fiscal Discipline Law is proper if the National Fiscal Discipline Law needs to be enacted. Futhermore, the main methodology based on macroeconomic theory is an analytical approach to explain what the disadvantages of the present draft version of National Fiscal Discipline Law are. That is, the present public finance laws is, narrowly, on the basis of the criterion of classical economics; but there is a lack of reasons why they must be based on classical economics. However, this paper is not only a critique of the draft version of National Fiscal Discipline Law but an enactment of the National Fiscal Equilibrium Law which is the optimal Public Finance Basic Law. The crucial foundation stones of the National Fiscal Equilibrium Law are the economic theories of L.Randall Wray and Hyman P.Minsky. That is to say, it’s asserted that the government must create full employment through an Employer of Last Resort program (ELR) in order to mitigate the general crisis of capitalism(for example, the gap between rich and poor or financial crisis in a global society) and put the constitutional national social security policy into real practice. Ultimately, the steady economic system will come true, and peace will reign in the country and people will live in peace and plenty.
Subjects
National Fiscal Discipline Law
Post-Keynesian economics
National Fiscal Equilibrium Law
Employer of Last Resort program (ELR)
Social Security
SDGs
Type
thesis
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