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
- 3 Constructing the Keynesian Order: Breaking Finance and Boosting Labor
- 4 Converting the Keynesian Order: Toward the Neoclassical Synthesis
- 5 Constructing the Great Stagflation: From Accommodation to Transformation
- Part III The Construction, Conversion, and Crisis of the Neoliberal Order
- Part IV Conclusions
- Bibliography
- Index
5 - Constructing the Great Stagflation: From Accommodation to Transformation
from Part II - The Construction, Conversion, and Collapse of the Keynesian 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
- 3 Constructing the Keynesian Order: Breaking Finance and Boosting Labor
- 4 Converting the Keynesian Order: Toward the Neoclassical Synthesis
- 5 Constructing the Great Stagflation: From Accommodation to Transformation
- Part III The Construction, Conversion, and Crisis of the Neoliberal Order
- Part IV Conclusions
- Bibliography
- Index
Summary
In chapter five, I argue that policy overconfidence obscured the accumulation of market power, as the accommodation of wage-price spirals driving stagflation led to the collapse of the Keynesian order. In a first stagflation, Nixon attempts at monetary “gradualism” over 1969-1971 would be abandoned in favor of monetary and regulatory accommodation of wage and price pressures. While the Ford administration briefly imposed austerity in 1974, the 1975 recession led to its policy retreat and the Carter administration’s accommodation of a second stagflation –which set the stage for the abandonment of gradualism in favor of unqualified austerity.
- Type
- Chapter
- Information
- Economic Ideas in Political TimeThe Rise and Fall of Economic Orders from the Progressive Era to the Global Financial Crisis, pp. 109 - 132Publisher: Cambridge University PressPrint publication year: 2016