THE NEW CONSENSUS UNDER STRESS: THE FINANCIAL CRISIS AND THE FISCAL POLICY COMEBACK

Autores

DOI:

https://doi.org/10.22456/2176-5456.73132

Palavras-chave:

Fiscal policy, Financial crisis, New macroeconomic consensus, Mainstream macroeconomics

Resumo

From the 1980s, mainstream macroeconomic thinking experienced a strong
convergence in methodological assumptions and policy proposals for more than two
decades. This “New Macroeconomics Consensus” was characterized by the role played
by the monetary policy in macroeconomic adjustment. Fiscal policy was set aside; it
should only be concerned with keeping public debt in a stable path in order to ensure
the “economic fundamentals”. However, the need for active and unconventional
policy measures during the 2008 global economic crisis brought fiscal policy back to
the mainstream debate. This paper briefly describes this convergence, discussing the
role it assigned for fiscal policy before the crisis, and then examines the issues the postcrisis debate concentrated on, showing how it differs from the previous mainstream
conception of fiscal policy. We suggest that mainstream limitations to deal with fiscal
policy may have opened a window of opportunity for a broader review of its role as a
policy tool.

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Biografia do Autor

Flávio Arantes, Universidade Estadual de Campinas (Unicamp)

Centro de Estudos de Conjuntura e de Política Econômica (Cecon) IE/Unicamp

Antonio Carlos Macedo e Silva, Universidade Estadual de Campinas (Unicamp), Instituto de Economia.

Professor no Instituto de Economia da Unicamp

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Publicado

2020-04-29

Como Citar

Arantes, F., & Silva, A. C. M. e. (2020). THE NEW CONSENSUS UNDER STRESS: THE FINANCIAL CRISIS AND THE FISCAL POLICY COMEBACK. Análise Econômica, 38(75). https://doi.org/10.22456/2176-5456.73132

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