The return of Keynesianism? Exploring path dependency and ideational change in post-covid fiscal policy. Issue 1 (21st January 2022)

• Record Type: Journal Article
• Authors: Chohan, Usman W
• Is Part Of: Policy & society. Volume 41:Issue 1(2022)
• Page Start: 68
• Page End: 82
• Publication Date: 2022-01-21
• Subjects: fiscal policy -- path dependency -- critical juncture -- paradigm -- public finance -- COVID-19 -- pandemic economics; Policy sciences -- Periodicals; Social policy -- Periodicals; Economic policy -- Periodicals; International relations -- Periodicals; Sciences de la politique -- Périodiques; Politique sociale -- Périodiques; Politique économique -- Périodiques; Relations internationales -- Périodiques; Australia -- Politics and government -- 1945- -- Periodicals; Australia -- Economic conditions -- 1945- -- Periodicals; Pacific Area -- Politics and government -- Periodicals; Pacific Area -- Economic conditions -- Periodicals; Australie -- Politique et gouvernement -- 1945- -- Périodiques; Australie -- Conditions économiques -- 1945- -- Périodiques; Pacifique, Région du -- Politique et gouvernement -- Périodiques; Pacifique, Région du -- Conditions économiques -- Périodiques; 320.605
• DOI: 10.1093/polsoc/puab013
• Languages: English
• ISSNs: 1449-4035

Abstract

Abstract: The aim of this article is to explore the nature of policy change in the domain of public finance (fiscal policy) in the wake of the coronavirus disease (Covid-19) pandemic as well as for a post-Covid era. It draws upon the literatures of path dependency and ideational change in public policy to consider three broad questions: (1) whether the pandemic really is a critical juncture for policy change; (2) whether the extant neoliberal austerity paradigm has faced lasting ideational displacement by Keynesianism; and (3) whether Covid-19 has really punctuated the existing fiscal policy equilibrium or rather served as a path-clearing accelerator of public finance trends that were already underway. The article then suggests three potential future trajectories: Keynesian, neoliberal, and mixed/other to consider how the path of policy change might materialize in the fiscal realm in the post-Covid era.