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Policy Paradigms

Reinhart & Rogoff: Paradigm Battles, Reputation Hits, and the Public Intellectual

Sina Odugbemi's picture

You can almost feel the intensifying and clangorous clash of two economic policy paradigms. The question is: what is the best policy response to high indebtedness by countries especially after the global financial crash of 2008? Some economists say stimulate the economy now even if it means taking on more debt, pursue growth and then deal with deficits once the economy is robust. Others say you have to deal with deficits now by imposing serious, often crippling austerity programs. The bloodless phrase for this: fiscal consolidation.  Who is right and who is wrong? Unfortunately for many citizens, this is not an argument that can be settled in a science lab, perhaps by testing the theories on some unfortunate rats or monkeys. Entire countries are the laboratories for the testing of these rival policy paradigms.

I use the phrase ‘policy paradigms’ advisedly because I have been reading the notable political scientist  Peter A. Hall who wrote the classic piece ‘Policy Paradigms, Social Learning, and the State: The Case of Economic Policymaking in Britain’ for the journal of Comparative Politics in 1993. I went back to the piece after reading the April 2013 special issue of the journal, Governance, which is entirely about the politics of policy paradigms. In that compelling issue, a salute to Hall’s classic essay, he himself has an op-ed titled ‘Brother, Can You Paradigm?’ Hall restates the view that policy paradigms shift, for example from Keynesian policies to monetarist ones, but in order for this to happen ‘each of these transitions required a motivation, means, and motor’.