Keynesianism Vs. Neo Classical Orthodoxygreenspun.com : LUSENET : Economic History (and Related Observations) : One Thread
ive been giving some thought to the keynesian.orthodoxy shift and and was wondering what your thoughts are.
How and why have the relative weight assigned to the various goals of macroecononic policy making shifted since the late 1970's in Australia?
-- anthony fisher (firstname.lastname@example.org), May 31, 2000
I wrote a whole bunch about this in J. Bradford DeLong, "America's Peacetime Inflation: The 1970s," in Christina Romer and David Romer. eds., Reducing Inflation: Motivation and Strategy (Chicago: University of Chicago Press, 1997).
Unfortunately I haven't been able to do a very good job of compressing the argument into something short and intelligible. But in a nutshell, I would say that the shift away from Keynesianism was due to (a) the fading of the memory of the Great Depression, and (b) the failure of governments to strike bargains with unions in the 1970s that would preserve both high employment and low inflation...
-- Bradford DeLong (email@example.com), June 19, 2000.