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30 - The Evolution of Fiscal and Monetary Policy

from V - Established and New State Policies and Innovations

Published online by Cambridge University Press:  22 February 2020

By
John L. Campbell
Edited by
Thomas Janoski ,
Cedric de Leon ,
Joya Misra  and
Isaac William Martin
Thomas Janoski
Affiliation:
University of Kentucky
Cedric de Leon
Affiliation:
University of Massachusetts, Amherst
Joya Misra
Affiliation:
University of Massachusetts, Amherst
Isaac William Martin
Affiliation:
University of California, San Diego
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Summary

Fiscal and monetary policy are among the most basic tools governments use to manage their economies. These tools have evolved in dramatic fashion during the twentieth and early twenty-first centuries. This chapter examines that evolution and its implications for socioeconomic performance. I begin by explaining what these tools are. Second, I discuss the basic debates about how they ought to be used and how the general approach to fiscal and monetary policy evolved from the Keynesian era beginning roughly in the 1930s to the neoliberal era beginning in the late 1970s. My intention is not to delve into the intricacies of economic theory or the minutiae of economic policy but rather to summarize these things with broad strokes.

Keywords

Neoliberalismfiscal policymonetary policytaxationKeynesianism
Type
Chapter
Information
The New Handbook of Political Sociology , pp. 787 - 811
Publisher: Cambridge University Press
Print publication year: 2020

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