The desperate need for a paradigm shift in establishment macroeconomics

Instead, Galbraith understood the importance of greater collective action so as to form a countervailing The desperate need for a paradigm shift in establishment macroeconomics 2 power to the pecuniary power of dominant corporate enterprises, and also recognized the centrality of the state in the determination of both micro- and macro-economic outcomes. [...] The desperate need for a paradigm shift in establishment macroeconomics 5 (i) The return of the old conventional wisdom of fiscal austerity and the “new fiscalism” following the global financial crisis On the fiscal policy side, the new austere face of neoliberalism from the 1990s turned out to be nothing more than recycled anti-Keynesian policy of “sound finance” that had already prevented govern. [...] As it can be seen in Figure 4, regardless of which of these two Pasinetti indicators, it depicts the same portrait of a massive transfer that had occurred prior to the Global Financial Crisis and of the tremendous reversal of the fortunes of the rentiers after the crisis when using the difference between real long-term interest rates and aggregate average labour productivity growth or an indicator. [...] As shown in Figure 4, which displays data on the share of wages over the last five decades, we observe that after having initially gone down since the early peak of the anti-inflation monetarist period of the late-1970s and early-1980s, the share of labour had slowly crept up by the late-1980s, only to barrel down almost immediately after the adoption of IT policy in Canada in 1991. [...] The only reason why the share of labour has somewhat stabilized during the “inter crises” decade of 2009 and 2019 after the Global Financial Crisis is that productivity growth rates had been very low until before the COVID-19 crisis in 2020 and, at the same time, the rate of inflation had been stuck for most of the period below the two per cent mid-point and closer to the lower end of the one to t.