Globalization and Austerity: Flipping Partisan Effects on Fiscal Policy During (Recent) International Crises

Raess, Damian (2021). Globalization and Austerity: Flipping Partisan Effects on Fiscal Policy During (Recent) International Crises. Political studies review, 71(2), pp. 332-358. Sage Publications 10.1177/00323217211015811

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This article investigates the effect of government partisanship on fiscal policy outputs during the three international economic crises of 1981–1984, 1990–1994 and 2008–2013. Encompassing 19–23 advanced democracies, the statistical analysis suggests that partisan effects have increased over time and are characterized, in the two last crises, by a “new asymmetry” whereby left governments pursued more contractionary fiscal policies than non-left governments over the course of the business cycle. Furthermore, it attributes left governments’ endorsement of austere fiscal policies to the constraining effects of financial markets in the context of high/surging debt. This is supported by qualitative analysis of select government responses to the Global Financial Crisis, shedding new light on the new austerity that started in the early 2010s. The ideological mix with political partisanship during hard times surely is confusing to ordinary citizens. The article cautiously points to a neglected yet important international economic origin of our political discontents.

Item Type:

Journal Article (Original Article)

Division/Institute:

02 Faculty of Law > Department of Economic Law > World Trade Institute
10 Strategic Research Centers > World Trade Institute

UniBE Contributor:

Räss, Damian

Subjects:

300 Social sciences, sociology & anthropology > 320 Political science
300 Social sciences, sociology & anthropology > 380 Commerce, communications & transportation

ISSN:

1478-9302

Publisher:

Sage Publications

Language:

English

Submitter:

Pablo Rahul Das

Date Deposited:

16 Jul 2021 10:24

Last Modified:

28 May 2023 01:55

Publisher DOI:

10.1177/00323217211015811

Related URLs:

BORIS DOI:

10.48350/157015

URI:

https://boris.unibe.ch/id/eprint/157015

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