Stabilizing a High Pressure Transition Economy

The role of the fiscal authority

In the heydey of Keynesianism, during the 1960s and 1970s, fiscal authority was preeminent and monetary authority was largely neutral. The management of the macroeconomy was very much in the hands of the politicians, with the technocrats at best playing second fiddle. The diagnosis of the neoliberal counterrevolution was that this arrangement was respon…