The hollowing out of monetarism: the rise of rules-based monetary policy-making in the UK and USA and problems with the paradigm change framework

What is it about?

. It unearths the ‘thwarted operationalisation’ of monetarist principles in the UK and USA in the 1980s and 1990s, and underlines the resilience of New Keynesian thinking and policy frameworks amongst monetary policy practitioners.

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Why is it important?

It kicks the tyres of the paradigm change framework, finding that taking a paradigmatic view of economic ideas and their relationship policy orders can overstate change, overlook continuities, and overrate the efficiency of punctuated change. Paradigm thinking also under-appreciates scope to combine ideas from different paradigmatic homes.