Post-war displacement of Keynesianism

The post-war displacement of Keynesianism involved the replacement of Keynesian economics as the leading theoretical influence on economic life in the developed world. Similarly, the allied discipline known as development economics was largely displaced as the guiding influence on economic policies adopted by developing nations.

Significant departures of government policy from the previous Keynesian orthodoxy largely took place in the late 1970s and early 1980s. These shifts were preceded by efforts to discredit Keyne's economic ideas intellectually, which had took place over several decades.

The displacement of Keynesian thinking was driven by those who leaned towards purer free market policies, rather than the mixed economy which require a significant role for government intervention. Their motivations included a dislike of large governments which they saw as prone to interfere excessively in the lives of their citizens; an intellectual preference for Classical or Neoclassical economics and related schools; or in some cases a belief that their individual interests were best served by promoting a limited role for government. Efforts against Keynesianism took place on three fronts – in the academic world, in politics, and in the wider world of business and public opinion.