Covid-19 and interweaving of crises: Restoring Keynesianism in order to rebuild macroeconomic policy

Covid-19 et imbrication des crises: réhabiliter le keynésianisme pour refonder la politique macroéconomique

Sebastien Charles, Thomas Dallery and Jonathan Marie

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Abstract: The worldwide pandemic has induced an unprecedented economic crisis. The social consequences are catastrophic, putting the environmental crisis into perspective. The interweaving of these crises requires us to revise the way we conduct macroeconomic policies. As suggested by post-Keynesians, and contrary to recommendations made by economists from the new consensus, fiscal policy has to be the main tool for macroeconomic policy. Monetary policy has to support fiscal policy, while reductions in working hours have to be put in place. Such a reorganization of the economic policy is necessary to limit the negative economic consequences of the Covid-19 crisis, but also to move towards full employment, to trigger ecological transition and to reduce the vulnerability of our economies to global shocks.

Keywords: economic policy; new consensus; post-keynesianism; politique économique; nouveau consensus; post-keynésianisme (search for similar items in EconPapers)
Date: 2021-02-10
New Economics Papers: this item is included in nep-pke
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Published in Revue de la régulation. Capitalisme, institutions, pouvoirs, 2021, Covid-19 - L’économie dévoilée par la crise pandémique, 29, 15p. ⟨10.4000/regulation.18390⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03148074

DOI: 10.4000/regulation.18390

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