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Sunday, June 07, 2015

'Austerity as a Knowledge Transmission Mechanism failure'

Related to the post after this one, from Simon Wren-Lewis:

Austerity as a Knowledge Transmission Mechanism failure: In this post I talked about the Knowledge Transmission Mechanism: the process by which academic ideas do or do not get translated into economic policy. I pointed to the importance of what I called ‘policy intermediaries’ in this process: civil servants, think tanks, policy entrepreneurs, the media, and occasionally financial sector economists and central banks. Here I want to ask whether thinking about these intermediaries could help explain the continuing popularity amongst policy makers of austerity during a liquidity trap, even though there is an academic consensus behind the idea that austerity now would harm output. ...

    Posted by on Sunday, June 7, 2015 at 11:24 AM in Economics, Fiscal Policy, Politics | Permalink  Comments (16)


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