In search of a new economic policy paradigm: the case of Spain

Abstract Economic policies to address the economic consequences of the COVID pandemic are entirely different from those developed after the financial crisis of 2008. Some scholars have presented this change as a potential shift in the economic policy paradigm. We study the case of Spain, where these changes have been particularly noticeable, comparing the economic policies developed in both periods. We discuss the macroeconomic outcomes of new economic policies, compared with the economic consequences of fiscal and wage austerity deployed between 2010 and 2014. Finally, we conclude with some considerations on the possibilities that exist for this policy to be consolidated as a “paradigm shift” and the risks that threaten its continuity. Although our work focuses on the Spanish case, we will also include reflections on the European context in which these economic policies are developed.