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The Perils of Paradigm Maintenance in the Face of Crisis

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Part of the International Political Economy Series book series (IPES)

Abstract

In the wake of the global financial crisis, two ideas became new conventional wisdoms. One was that the mainstream economic consensus of the past decades had been shattered. The other was that the turbulence was beyond comparison to any other since the Great Depression. Both suppositions can be questioned, not for the sake of provocation but for remembering a more recent past — the 1960s and 1970s — as a guide to what might be around the corner. This was the last time that US hegemony was seriously challenged. But it was then aggressively revived through monetarism and militarism, effectively ending the ‘Golden Age’ of Keynesianism in the North and developmentalism in the South. The resulting economic policy package became known as neoliberalism or, in more innocuous terms, the ’Washington consensus’, that is, the consensus that is now supposed to be shattered. Then, as now, we tend to assume that systemic crisis signals the end of hegemony.

Keywords

  • Gross Domestic Product
  • Current Account
  • Debt Crisis
  • Current Account Deficit
  • Foreign Exchange Reserve

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Fischer, A.M. (2012). The Perils of Paradigm Maintenance in the Face of Crisis. In: Utting, P., Razavi, S., Buchholz, R.V. (eds) The Global Crisis and Transformative Social Change. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137002501_3

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