Neoliberalism, the Washington Consensus, market fundamentalism – call it whatever you want – has been replaced with something very different

 The economic-policy conversation in the United States has been thoroughly transformed within the space of just a few years.

In macroeconomic policy, debt and inflation fears have given way to a preference for over-stimulating the economy and downplaying the risks to price stability. 

As for taxation, the tacit acquiescence in a global race to the bottom is out, and establishing a global minimum rate for multinational corporations is in. 

Industrial policy, which could not even be mentioned in polite company until recently, is back with a vengeance.

This time around, academic economists have been largely playing catch-up.

Dani Rodrik Project Syndicate 10 September 2021

https://www.project-syndicate.org/commentary/economics-turned-upside-down-in-the-us-by-dani-rodrik-2021-09


The right answer to any policy question in economics is, “It depends.” 

Dani Rodrik, Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government, is the author of Straight Talk on Trade: Ideas for a Sane World Economy.

Project Syndicate 11 May 2021

https://englundmacro.blogspot.com/2021/05/a-new-paradigm-for-teaching-economics.html


In the 1970s some economists began arguing that Keynesianism must be wrong, because ...

because the phenomena Keynes described couldn’t happen in an economy of perfectly rational individuals and perfectly functioning markets.

Then came the 2008 crisis and its aftermath, which demonstrated that Keynes had been right all along. 

Paul Krugman NYT 1 June 2021

https://englundmacro.blogspot.com/2021/06/in-1970s-some-economists-began-arguing.html




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