Economic Ideas in Political Time The Rise and Fall of Economic Orders from the Progressive Era to the Global Financial Crisis
Book contents
- Economic Ideas in Political Time
- Reviews
- Economic Ideas in Political Time
- Copyright page
- Contents
- Preface
- Book part
- Part I Theoretical and Historical Foundations
- Part II The Construction, Conversion, and Collapse of the Keynesian Order
- Part III The Construction, Conversion, and Crisis of the Neoliberal Order
- 6 Constructing the Neoliberal Order: Breaking Labor and Boosting Finance
- 7 Converting the Neoliberal Order: Toward the New Keynesianism
- 8 Constructing the Global Financial Crisis: From Accommodation to Iteration
- Part IV Conclusions
- Bibliography
- Index
8 - Constructing the Global Financial Crisis: From Accommodation to Iteration
from Part III - The Construction, Conversion, and Crisis of the Neoliberal Order
Published online by Cambridge University Press: 05 July 2016
Book contents
- Economic Ideas in Political Time
- Reviews
- Economic Ideas in Political Time
- Copyright page
- Contents
- Preface
- Book part
- Part I Theoretical and Historical Foundations
- Part II The Construction, Conversion, and Collapse of the Keynesian Order
- Part III The Construction, Conversion, and Crisis of the Neoliberal Order
- 6 Constructing the Neoliberal Order: Breaking Labor and Boosting Finance
- 7 Converting the Neoliberal Order: Toward the New Keynesianism
- 8 Constructing the Global Financial Crisis: From Accommodation to Iteration
- Part IV Conclusions
- Bibliography
- Index
Summary
In chapter eight, I argue that overconfidence in a “Great Moderation” of ideas and market trends spurred the accommodation of financial power over the 2000s, leading to the collapse of the neoliberal order in the Global Financial Crisis. First, after the dot-com crash of 2000-2001, fiscal, monetary, and regulatory accommodation would be reinforced by a consensus on the ability of policymakers to stabilize the subprime bubble. Secondly, while the Global Financial Crisis would witness an initial repudiation of this consensus, the scope for reform would also be limited by the need for fiscal, monetary and regulatory accommodation to enable recovery. Subsequently, an incomplete transformation would see the continued support for asset-price bubbles and “Too Big to Fail” institutions maintained alongside incremental efforts at promoting competition in the shadow banking system and advancing macroprudential reform.
- Type
- Chapter
- Information
- Economic Ideas in Political TimeThe Rise and Fall of Economic Orders from the Progressive Era to the Global Financial Crisis, pp. 179 - 202Publisher: Cambridge University PressPrint publication year: 2016