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
7 - Converting the Neoliberal Order: Toward the New Keynesianism
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 seven, I address the conversion of this order in the rise of the Federal Reserve and its use of monetary fine tuning, guided by a New Keynesian consensus on a Taylor Rule trade-off between the volatility of growth and inflation. Over the 1990s, this monetary consensus would be strengthened at two moments of crisis: over the 1994-1995 Federal Reserve tightening and Mexican peso crisis; and over the scope for monetary accommodation in the 1997-1999 crises. Ultimately, monetary policymakers would come to see their role as enabling “soft landings,” mopping up after financial crises, and promoting financial deregulation.
- Type
- Chapter
- Information
- Economic Ideas in Political TimeThe Rise and Fall of Economic Orders from the Progressive Era to the Global Financial Crisis, pp. 157 - 178Publisher: Cambridge University PressPrint publication year: 2016