From great moderation to great recession: some considerations about the construction and revision of the new consensus macroeconomics after the 2007-2008 crisis
Paulo Saraiva,
Luiz Fernando de Paula,
André de Melo Modenesi
Affiliations
Paulo Saraiva
Universidade Federal Rural do Rio de Janeiro (UFRRJ).
Luiz Fernando de Paula
Instituto de Economia da Universidade Federal do Rio de Janeiro (IE/UFRJ)
André de Melo Modenesi
Instituto de Economia da Universidade Federal do Rio de Janeiro (IE/UFRJ)
The last four decades of economic thought have been marked by the rise, hegemony and revision of economic liberalism epitomized by the New Consensus Macroeconomics. The consolidation of a "new neoclassical synthesis" in the early 1990s resulted in the implementation of inflation targeting regime in several countries, in the defense of great moderation in the early 2000s and the occurrence of the financial crisis from 2007. However, the review of the New Macroeconomic Consensus, still ongoing and with many disagreements comes relativizing the impact of the crisis and proposing adjustments to economic policies despite of reaffirming the orthodoxy theoretical foundations.
