Economic Policy in Capitalism 4.0
THROUGHOUT THE THIRTY-YEAR PERIOD up to the bankruptcy of Lehman, most governments and central banks acknowledged only one official objective for macroeconomic policy: to control inflation. The single-minded focus on inflation held even though central bankers always understood that the relationship between money and inflation was much more subtle than official slogans proclaimed. With demand management neutered by the predominant monetarist economic doctrine, only one reasonable criterion for judging the success of macroeconomic policy seemed to remain: price stability.
All the other goals of macroeconomic management that had dominated democratic politics from the 1930s until the late 1970s—achieving ...