2009/08/26 by Johannes Lindvall · 122 citations
Social Sciences · Economics, Econometrics and Finance · #Social Policy and Reform Studies #European Union Policy and Governance #Fiscal Policies and Political Economy #Economics #Fiscal policy #Danish #Unemployment #Monetary policy #Politics #Selection (genetic algorithm) #Exchange rate #Economic policy #Macroeconomics #Keynesian economics #Political science
paper · doi:10.1017/s0043887109990104
published in World Politics 61(4), 703-730 (Cambridge University Press)
openalex publication_date 2009/08/26 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/28
A number of influential studies in political science argue that important economic policy changes in the rich democracies since the mid-1970s were caused by the introduction of new economic ideas. This article claims that while experts exert strong influence over the selection of policy instruments, their influence over the formulation of policy objectives is much weaker. In the 1970s, 1980s, and 1990s, the predominance of Keynesianism in Austria and Denmark did not lead Austrian and Danish governments to maintain low unemployment longer than Sweden, where Keynesianism was less strong. But it did lead them to regard fiscal policy as an instrument that can be used to control the level of activity in the economy, while their Swedish counterparts relied instead on exchange rate and monetary policy.