Monetarism displaced Keynesianism through a staged diffusion across elite institutions

Evidence

First in the learned journals, then in the senior common rooms, and finally in informal exchanges between the “new academics” and the more “sensitive” senior civil servants, a monetarist version of neoclassical economics came to provide the accepted frame of reference for economic debate. The economic journalists helped to make this revolution in ideas acceptable in the media and the serious financial press—and thus, not long after, in the boardrooms of enterprises which everyone imagined had long since abandoned open competition for the safer waters of state capitalism. — Hall, Stuart, Essential Essays, Volume 1, 1109 (#corroborates, via linked claim)

To have replaced it in some of the most powerful and influential apparatuses of government, in research and the universities, and restored in its place the possessive individualist and free-market nostrums of Hayek and Friedman is, in itself, a remarkable reversal. Ideological transformations, however, do not take place by magic. For years bodies like the Institute for Economic Affairs have been plugging away in the margins of the Conservative Party and the informed public debate on economic policy, refurbishing the gospel of Adam Smith and the free market, undermining the assumptions of neo-Keynesianism, planning and projecting how the “competitive stimulus” could be applied again to one area after another of those sectors which, as they see it, have fallen into the corporatist abyss. — Hall, Stuart, Essential Essays, Volume 1, 1108 (#qualifies, via linked claim)

Categorization

Category: Causal Relationships

Related

• Monetarism conquered Britain by staged diffusion from journals to bureaucrats to boardrooms. (similarity 0.89)
• Think tanks slowly displaced Keynesianism with free-market doctrine in Britain (similarity 0.84)
• 1970s stagflation discredited Keynesian demand management and empowered monetarism (similarity 0.79)
• Monetarism mainstreamed Austrian and ordoliberal economic ideas (similarity 0.79)

Broader Connections

• Monetarism spread through a staged academic-to-policymaker-to-media cascade. #corroborates (0.90) — Hall, Stuart, Essential Essays, Volume 1, 1109
• The shift from Keynesianism to monetarism was engineered by decades of think-tank advocacy. #qualifies (0.60) — Hall, Stuart, Essential Essays, Volume 1, 1108