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This article analyses late 1960s’ and early 1970s’ policy debate on issues concerning balance of payments in Sweden. Part of this debate was the question of fiscal austerity as a tool to achieve external balance, and if it could be used without risking economic and social unrest. The aim is twofold: first to empirically shine new light on modern Swedish economic policy in a historic context. Second to theoretically explore new ways of interpreting the relationship between political thinking and economic ideas. Special focus within the second aim are the consequences of political thinking on Keynesian economic ideas as a framework of economic understanding at the time. The study is qualitative in its methods and pays attention to limits within the relationship between economic policymaking and economic expertise. The article highlights conflicting perspectives on Keynesian ideas and the heterogeneity of these perspectives among economic experts. A heterogeneity of this kind is also shown to complicate the assumed close relationship between Social Democracy and Keynesianism in a historic context. In essence, the article shows that studying policy debates in close historic detail makes for new conclusions on the development of modern economic ideas and the part political thinking plays in it.

L’article montre l’intérêt d’une approche interdisciplinaire pour analyser la prise de décision en matière de politiques économiques. Il prend appui sur l’exemple du « tournant de la rigueur » en France, opéré en 1983 par le gouvernement socialiste. Cet épisode demeure encore, 40 ans plus tard, une référence incontournable des débats politiques relatifs à l’exercice du pouvoir par les forces de gauche. Au travers de l’étude des fonds d’archive des conseillers de l’Élysée et de données macroéconomiques, l’article donne à voir l’évolution de la controverse entre partisans de la relance et avocats de la rigueur, en précisant les stratégies suivies par ces derniers pour emporter l’adhésion du président Mitterrand. Le « tournant » de la rigueur n’apparaît alors ni comme le seul produit de circonstances économiques (contrainte extérieure) imposant ce choix, ni comme le seul fruit d’une conversion idéologique (néolibérale) des gouvernants, ni enfin comme la seule conséquence d’un travail relationnel d’un front de conseillers, mais comme le produit de ces différentes causes. The article shows the value of an interdisciplinary approach for analyzing decision-making about economic policies. It uses the example of the “austerity turn” taken by France’s socialist government in 1983. Forty years later, this episode remains a key reference point in political debates on the exercise of power by the forces of the left. Through a study of the archives of the Élysée’s advisors and the mobilization of macroeconomic data, the article shows the evolution of the controversy between the supporters of economic stimulus and the advocates of austerity, by specifying the strategies followed by the latter to win over President Mitterrand. The turn to austerity appears neither as just the product of economic circumstances (external constraint) imposing this choice, nor as just the fruit of an (neo-liberal) ideological conversion of the government, nor as just the consequence of the relational work of a front of advisors, but as the joint product of these different causes. El artículo muestra el interés de un enfoque interdisciplinario para analizar la toma de decisiones en política económica. Se basa en el ejemplo del “giro de rigor” en Francia, operado en 1983 por el gobierno socialista. Este episodio sigue siendo, 40 años después, una referencia imprescindible en los debates políticos relacionados con el ejercicio del poder por parte de las fuerzas de izquierda. A través del estudio de los archivos de los asesores del Elíseo y datos macroeconómicos, el artículo muestra la evolución de la polémica entre partidarios de la recuperación y defensores de la austeridad, precisando las estrategias seguidas por estos últimos para conseguir el apoyo del presidente Mitterrand. El "punto de inflexión" del rigor no aparece entonces ni como el único producto de las circunstancias económicas (restricción externa) que imponen esta elección, ni como el único fruto de una conversión ideológica (neoliberal) de los que están en el poder, ni finalmente como la única consecuencia de un trabajo relacional de un frente de asesores, pero como producto de estas diferentes causas.

How has Congress responded to recessions during the era of presidential/executive power? My dissertation explores this question through the analysis of an original dataset and case studies to examine economic policymaking in Congress during recessions in the post war era. Four findings are the result of this study. First, while both Congress and the president were more evenly matched from 1946 to 1974, the legislative initiative shifted to Congress during recessions since 1974. Second, congressional responses to recessions tilted heavily towards targeted group benefits. That is, Congress distributed benefits to groups much more often than it did to geographic areas or the general public. Third, the magnitude of benefits Congress distributed during recessions increased substantially after 1974 when measured in real terms. Fourth, Congress has increasingly used taxes and the private sector, rather than a former emphasis on federal spending and the private sector, when distributing benefits to individuals since 1974. My dissertation makes a two-part argument. First, it argues that the organizational structure of Congress helps explains these patterns in congressional behavior. Congressional initiative in the legislative process and how Congress made economic policy during this period depended in part on whether power in committees was concentrated or not, decision-making on spending levels, taxation levels, and regulation was concentrated or not, and whether committee chairs or the Speaker held power over floor scheduling in the House. Second, my dissertation argues that party control of Congress impacted how Congress made economic policy during recession. Congress only used taxes to distribute benefits when the Republican party controlled at least one chamber and the benefits it distributed were on average larger. When controlled by the Democratic party, in contrast, Congress used a mix of tax cuts, the private sector, and federal spending to distribute benefits and the benefits it distributed were on average smaller.

Good economic policymaking requires the best possible economic advice. To be an effective adviser, a policy economist needs to remain credible, even under pressure. There is a gap between theory and reality; minding the gap can help policy economists determine which theories are more likely to work as a matter of practical policymaking. Adding the human dimension makes for better decisions by casting light on how people might respond to otherwise rational policy proposals. It is not sufficient for good policy outcomes that economists confer only with their professional peers. Citizens must be persuaded that the proposed policy reform is in the best interests of the community as a whole. Good economic policymaking should not underestimate the power of incentives to override moral and ethical restraint. Regulation is a poor substitute for culturally-embedded moral restraint. While it is possible to divorce the mechanical side of economics from its moral foundations, this is not the route to good economic policymaking.

I examine the extent to which public sector outsourcing relates to public employment in OECD countries. I use new panel data on public sector outsourcing. The sample includes 26 countries over the period 2009-2015. Contrary to common expectations, the results do not suggest that public sector outsourcing expenditure was negatively related to public employment in the full sample. The relation between public sector outsourcing and public employment, however, does vary across countries. If anything, the growth in public sector outsourcing in period t-1 was positively correlated with the growth in public employment in period t. When public sector outsourcing gives rise to regrouping public employees but not reducing public employment, outsourcing may even increase inefficiencies in the public sector.

This paper introduces a multi-criteria method for measuring the globalization of national economies with the intention of establishing and thoroughly studying a country's position and potential for international integration. It is based on some of the advantages of the analytic hierarchy process methodology. By utilizing the traditional theory of comparative advantages, the new theory of competitive advantages, the theory of international production and some adequate empirical studies, we have developed a theoretical framework and set up a hierarchical model of relevant indicators for measuring and analyzing the globalization of national economies. Additionally, this paper offers solutions for restructuring the hierarchy of the model to consider data for all included indicators. The positions and potentials of national economies – especially the Croatian one – were researched in different international environments that are interesting for international integration. For the Croatian national economy, the empirical case study defines key success and failure spheres of its performance in the period of contemporary globalization, and suggests some measures for economic policymaking., Članak uvodi višekriterijsku metodu za mjerenje ekonomske globaliziranosti nacionalnih gospodarstava, a cilj je utvrđivanje i temeljito proučavanje položaja države i njezina potencijala za međunarodnu integraciju. Metoda se zasniva na određenim prednostima metodologije analitičkoga hijerarhijskog procesa. Na osnovama tradicionalne teorije komparativnih prednosti, nove teorije kompetitivnih prednosti, teorije međunarodne proizvodnje i određenih empirijskih studija, razvili smo teorijski okvir i postavili hijerarhijski model relevantnih indikatora za mjerenje i analizu globaliziranosti nacionalnih gospodarstava. Članak nudi rješenja za restrukturiranje hijerarhije modela u konačni model koji omogućuje upotrebu svih raspoloživih podataka. Pozicije i potencijali nacionalnih gospodarstava, posebno hrvatskoga, istraživani su u različitim internacionalnim okruženjima zanimljivima za međunarodnu integraciju. U pogledu hrvatske nacionalne ekonomije, ova empirijska studija određuje područja njezina uspjeha i neuspjeha u razdoblju suvremene globalizacije te daje određene prijedloge mjera ekonomske politike., Dieser Artikel führt eine Methode mehrfacher Kriterien zur Messung der Globalisiertheit von Nationalwirtschaften ein mit dem Ziel, die Lage eines bestimmten Staates und seines Potentials zur internationalen Integrierung zu ermitteln und einer gründlichen Untersuchung zu unterziehen. Die Wahl dieser Methode gründet auf bestimmten Vorzügen, die die Methodologie des analytischen Hierarchieprozesses aufzuweisen hat. Auf der Basis der traditionellen Theorie komparativer Vorzüge, der neuen Theorie kompetitiver Vorzüge, der Theorie der internationalen Produktion und bestimmter anderer empirischer Studien haben die Autoren einen theoretischen Rahmen entwickelt und ein Hierarchiemodell relevanter Indikatoren zur Messung und Analyse der Globalisiertheit nationaler Wirtschaftssysteme aufgestellt. Es werden Lösungen zur Restrukturierung des Hierarchiemodells in ein endgültiges Modell angeboten, welches die Nutzung aller verfügbarer Daten ermöglicht. Position und Potential nationaler Wirtschaftssysteme, zumal aber des kroatischen, wurden in einem jeweils unterschiedlichen internationalen Umfeld untersucht, das für eine internationale Integrierung interessant ist. Im Hinblick auf Kroatien werden Bereiche bestimmt, in denen die kroatische Wirtschaft, im Rahmen der zeitgenössischen Globalisierung, Erfolge und Misserfolge hervorbringen könnte. Die Autoren geben abschließend verschiedene Vorschläge zur Verbesserung der Wirtschaftspolitik.