Is the New Monetary Consensus Still Alive? A Critical Economic and Philosophical Appraisal

In this paper, we critically address the New Monetary Consensus (NMC) from a methodological standpoint, in order to assess its relevance. Although the mantras of the consensus are hardly questionable in their own right, we argue that the methodological underpinnings of the NMC account for its paradigmatic failure to predict the GFC, and be a reliable source of inspiration for post-crisis policies. We particularly emphasize the problematic nature of pre-crisis models. We conclude that the New Monetary Consensus has ceased to be relevant more than ten years after the beginning of the global crisis.