Bidenomicsa Declaring end to neoliberalism, new thinkers play down constraints of deficits, inflation and incentives
Governments should avoid deficits, liberalize trade and trust in markets. Taxes and social programs shouldn’t discourage work. This canon came to be known globally as the “Washington consensus” and in the U.S. as neoliberalism.
The latter label has always been more popular with its critics than its adherents.
Deficits aren’t harmful and may be necessary. Mr. Summers has labeled this secular stagnation.
“Modern monetary theory”—which few economists, even on the left, embrace—goes further, arguing deficits never crowd out private investment or raise interest rates.
WSJ 7 April 2021
Fiscal retrenchment, a smaller state and/or market liberalisation.
The advice was heralded as the Washington consensus because of the IMF’s location