Consensus, Dissensus and Economic Ideas: Economic Crisis and the Rise and Fall of Keynesianism – with John Quiggin

Henry Farrell and John Quiggin (2017), “Consensus, Dissensus and Economic Ideas: Economic Crisis and the Rise and Fall of Keynesianism,” International Studies Quarterly,61,1:269-283. Subsequent subject of an ISQ Symposium, featuring Paul Krugman, Elizabeth Berman, Stephen Nelson and Andrew Baker, with a response from the authors.

During the recent economic crisis, Keynesian ideas about fiscal stimulus briefly seemed to form the basis of a new expert consensus about how to deal with demand shocks. However, this apparent consensus soon collapsed into a continuing dissensus, with important consequences for policy. Neither conventional bargaining accounts nor existing theories of the role of ideas in policy outcomes easily explain the arc of international responses to the Great Recession. In this article, we propose that sociological arguments about professions, in conjunction with those about spaces of political contention as ecologies, provide a better understanding of the puzzle of Keynesianism’s rise and decline. The internal dynamics of prestige and status within the profession of economics intersected with policy arguments between states so as to make macroeconomic policy a “hinge” issue, over which coalitions in both ecologies contended. This explains how Keynesian economists and political actors worked together in the first phase of the crisis to advocate for and implement fiscal stimulus. It also explains why aggrieved policy actors, who did not favor stimulus, could help disrupt the apparent consensus in the second phase of the crisis by promoting the views of dissident economists.

Read the full article here

Other Writing:

Chapter in an Edited Volume

“Privacy in the Digital Age: States, Private Actors and Hybrid Arrangements,” in Governing Global Electronic Networks: International Perspectives on Power and Policy – eds. William Drake and Ernest Wilson

Privacy has emerged as a key regulatory issue in the wake of the information and communications revolution. New technologies have brought new problems; they have made it more difficult for individuals to maintain their privacy (or for other actors to protect it on their behalf), while also giving rise to complex issues of global regulation. ...
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Essay

Underworlds (Review Essay on Roberto Saviano’s Gomorrah)

Gangsters have guns and muscle, but a good writer always gets the last word. Roberto Saviano is a marked man. After writing Gomorrah and publicly denouncing the bosses of the Camorra, the organized crime network that dominates the Italian city of Naples and the surrounding region of Campania, Saviano began receiving death threats. When he ...
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