Confronting the Trilemma: Culture, Institutions, and Macroeconomic Disequilibria
David A. Zalewski
Journal of Economic Issues, 2020, vol. 54, issue 2, 294-315
Abstract:
Although the fundamental trilemma of open-economy macroeconomics has been a popular framework for analyzing the effects of various policy combinations, it ignores how policy regimes change. Drawing from Post-Keynesian Institutionalist theory, this article considers this process in democracies as a type of technological change in which progress may be limited by insufficient knowledge and actions by vested interests. A case study of interwar France shows that these barriers often delay or weaken stabilization programs, which increase both political and economic uncertainty that further lowers aggregate demand and inhibits the attainment of macroeconomic equilibria. Although we should not generalize these observations, they suggest that understanding and addressing cultural and institutional factors may be necessary for successful countercyclical policymaking.
Date: 2020
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/00213624.2020.1742061 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:54:y:2020:i:2:p:294-315
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20
DOI: 10.1080/00213624.2020.1742061
Access Statistics for this article
More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().