Premier Daniel Andrews has effectively called for the return of an old-school Keynesian approach to economic management, declaring "we need to put fiscal and industry policy back on the agenda".

In a major speech to a business audience, the Mr Andrews appeared to decry what he sees as a hands-off approach to economic management, warning the nation was in danger of settling back into the self-satisfaction that author Donald Horne warned of in his book The Lucky Country more than 50 years ago.

The CFA dispute has badly damaged Premier Daniel Andrews. Credit:Justin McManus

"Complacency is settling in again, and it's time for another shake-up," Mr Andrews said.

In comments likely to cleave an even bigger ideological divide in the economic debate, Mr Andrews warned of what he sees as limits on how much the Reserve Bank can be relied on to steer the economy through an uncertain period by cutting interest rates.