A brief review of the New Macroeconomic Consensus from the 2007/08 crisis: internal questions about the conduct of post-crisis economic policy

Abstract

The last four decades have been marked by the rise, hegemony and revision of liberal thought as summarized in the New Macroeconomic Consensus. The consolidation of a "new synthesis" in the early 1990s resulted, among various economic policy guidelines, in the implementation of the inflation targeting regime in several countries, in the defense of results of a great moderation in the early 2000s and in the occurrence the financial crisis as of 2007. However, the New Macroeconomic Consensus Review in the US reassessed the impact of the crisis on the theoretical framework and on the orientation of economic policy. As a result, marginal adjustments in the conduct of economic policy are proposed to deal with the failures observed since the 2007/08 crisis.