Advertisement

Changing Philosophies of Economic Policy

  • Robert Solomon
Chapter
  • 9 Downloads

Abstract

The 1980s began with an external shock to most economies as the world price of oil rose by about 150 per cent. The years around 1980 also witnessed numerous changes in political leadership, as was noted in the previous chapter. Many, though not all, of the political shifts brought fundamental policy modifications. In some cases — Thatcher and Reagan especially — the new leaders were hedgehogs rather than foxes and acted to impose a new ideology that was closer to orthodoxy than what it replaced. In other cases the alteration in policies — also toward greater orthodoxy — came about through the force of circumstances and under the leadership of foxes like Mitterrand in France and Gonzalez in Spain. These are four selected examples from among the industrial countries. As our story unfolds we shall encounter other instances of striking shifts away from interventionist policies based on changes in economic philosophy — sometimes carried out by ideological hedgehogs and sometimes by pragmatic foxes.

Keywords

Monetary Policy Supply Sider Budget Deficit Liberal Democratic Party Housing Allowance 
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.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. 1.
    N. Lawson, The View from No. 11: Memoirs of a Tory Radical ( London: Bantam Press, 1992 ) pp. 946–7.Google Scholar
  2. 2.
    J. Newhouse, ‘The Gamefish’, The New Yorker (10 February 1986 ).Google Scholar
  3. 4.
    A. Walters, Britain’s Economic Renaissance (Oxford University Press, 1986) p. 4.Google Scholar
  4. 6.
    D.T. Regan, For the Record: From Wall Street to Washington (New York: Harcourt Brace Jovanovich, 1988) pp. 142ff.Google Scholar
  5. 7.
    D. Stockman, The Triumph of Politics: How the Reagan Revolution Failed ( New York: Harper & Row, 1986 ) p. 76.Google Scholar
  6. 8.
    G. Gilder, Wealth and Poverty ( New York: Basic Books, 1981 ).Google Scholar
  7. 9.
    R.L. Bartley, The Seven Fat Years ( New York: The Free Press, 1992 ).Google Scholar
  8. 10.
    P.C. Roberts, ‘The Keynesian Attack on Mr Reagan’, The Wall Street Journal (19 March 1981 ).Google Scholar
  9. 11.
    P.C. Roberts, The Supply-Side Revolution ( Cambridge: Harvard University Press, 1984 ).CrossRefGoogle Scholar
  10. 12.
    O.J. Blanchard, ‘Reaganomics’, Economic Policy 2 (October 1987) pp. 17–48.Google Scholar
  11. 19.
    P. Favier and M. Martin-Roland, La Décennie Mitterrand (Paris: Editions du Seuil, vol. 1, 1991) p. 41. I draw on this valuable work and on volume 2 (1991) for the story of developments in France.Google Scholar
  12. 20.
    M. Hellwig and M. Neumann, ‘Germany under Kohl’, Economic Policy 5 (October 1987) pp. 113–14.Google Scholar

Copyright information

© Robert Solomon 1994

Authors and Affiliations

  • Robert Solomon
    • 1
  1. 1.The Brookings InstitutionUSA

Personalised recommendations