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This doctrine took hold with the monetarist counterrevolution against Keynesian economics that resulted from the inflationary crises of the 1970s. It inspired the Thatcher-Reagan political revolution, which in turn helped to propel a 25-year economic boom from 1982 onward.But market fundamentalism also inspired dangerous intellectual fallacies: that financial markets are always rational and efficient; that central banks must simply target inflation and not concern themselves with financial stability and unemployment; that the only legitimate role of fiscal policy is to balance budgets, not stabilize economic growth. Even as these fallacies blew up market-fundamentalist economics after 2007, market-fundamentalist politics survived, preventing an adequate policy response to the crisis.The economist who declared that government policies to maintain full employment were "manifestly unsound" was Milton Friedman. And the market-fundamentalist revolution that he helped to lead against Keynesian economics lasted for 30 years. But, just as Keynesianism was discredited by the inflationary crises of the 1970s, market fundamentalism succumbed to its own internal contradictions in the deflationary crisis of 2007 .
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