Abstract
The main question in this chapter is whether, in economic theory and economic policy, there will be a lasting Keynesian paradigm shift in public finances due to Covid-19? Keynesianism can be said to have made a strong comeback during the financial crisis of 2007-2008, but it did not suppress neoliberal orthodoxy, as the latter enjoyed a brief renaissance with austerity policies. On the other hand, it can be argued that Covid-19 has been a springboard towards new fiscal paradigms, just as it has been a ground-breaking accelerator for latent political shifts that were already underway. The pandemic serves as a focal event that has opened a unique policy window for government intervention of an unprecedented scale in most countries, reflecting a Keynesian theoretical understanding.
Original language | English |
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Title of host publication | Welfare States in a Turbulent Era |
Number of pages | 14 |
Publisher | Edward Elgar Publishing |
Publication date | 14 Jul 2023 |
Pages | 98-111 |
Chapter | 7 |
ISBN (Print) | 9781803926834 |
ISBN (Electronic) | 9781803926841 |
DOIs | |
Publication status | Published - 14 Jul 2023 |