Odd Lots Did We Just Experience a Break in the Neoliberal Consensus?
Mar 15, 2021
Skanda Amarnath, head of research at Employ America, and Mike Konczal, director at the Roosevelt Institute and author of "Freedom from the Market," delve into the potential end of the neoliberal consensus. They discuss the surprising willingness for increased fiscal stimulus as a response to economic challenges. The duo critiques the historical underpinnings of neoliberalism, while also exploring how recent shifts in policy are reshaping the economic landscape, emphasizing the importance of aligning fiscal strategy with public needs amidst evolving political dynamics.
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Volcker Shock and Macroeconomic Policy
- The Volcker shock of 1980 marked a significant shift in macroeconomic policy.
- It coincided with declining rates, decreased unionization, and the rise of finance.
Post-Fed Macro Policy
- The "great moderation" triumphalism ended with the 2008 financial crisis.
- A decade later, the question remains whether macro policy can move beyond Fed dominance.
Shifting Economic Perspectives
- Two key differences distinguish the current economic situation from the 2008 crisis.
- The current administration views the deficit as an investment, not a threat, and acknowledges the possibility of unemployment below 5%.
