The Great Recession and its aftermath shattered the policy consensus on economics. What would come next? It’s taken a while, but we’re witnessing the emergence of an important new vision.

Before the crash, complacent Democrats, whatever their disagreements with their Republican peers, tended to agree with them that the economy was largely self-correcting. The Federal Reserve possessed the tools to nudge the economy to full employment, they thought. What’s more, government programs, while sometimes a necessary evil, were likely to be an inefficient drag compared with the private market. Inequality was something to worry about, sure, but hardly a crisis, and policies were correspondingly timid and market-focused.

But there’s been a quiet revolution in thinking about economic issues — at least on the left. Call the developing consensus the “new liberal economics.” Emerging from a wide range of academic research, popular writing, and activist energy, it reflects an economic liberalism that is both more comprehensive and self-confident than what was produced during the era of conservative dominance. Yet it’s not a nostalgic throwback but a forward-looking set of ideas and policies building out of the failures of the old paradigm.

Source: The “new liberal economics” is the key to understanding Hillary Clinton’s policies – Vox