Reframing centre-left neoliberalism: New Keynesian theory, Third Way ideology, and the construction of an elite consensus in the US, Britain, and Australia

This article aims to contribute to a growing literature on the role of social democratic and progressive parties in shaping neoliberalism. We argue that existing literature has not fully recognised the unique intellectual and ideological traditions of the Centre-Left as a distinctive wing of neoliberalism. Much of this confusion can be resolved by examining the unique ideological contributions of New Keynesian economics in the context of a Gramscian political analysis. Focusing on Centre-Left Anglo-American governments in the US, Britain, and Australia throughout the 1990s and 2000s, we demonstrate how New Keynesian theories provided the intellectual justification for the Third Way’s ideological project and model of state interventionism at the height of the neoliberal period. While Centre-Left political parties in these Anglo-American states have recently sought to re-invent themselves under a new interventionist economic paradigm, we conclude by showing how they have continued to reproduce orthodoxies associated with the New Keynesian consensus.