Consider the following emerging trends. Manufacturing activities are critical for economic growth and should therefore be reshored. Industrial policy is important to support manufacturing. Strategic industries should be subsidised (and even winners there should be picked). Certain trade restrictions are necessary to level the playing field and protect domestic industry and jobs. Regulation of financial markets is essential. Financialisation should be controlled. Globalisation should be slowed and reversed. Capital controls are good and external borrowings should be constrained. The inflation target should be higher. Deficits and public debts are fine as long as their growth is slower than the economic growth rate. Rent controls may be required to make housing affordable. Government financing is critical for the green transition. Government intervention in general is important for economic growth. And so on.
The retreat of orthodoxy and return of prudence
The retreat of orthodoxy and return of…
The retreat of orthodoxy and return of prudence
Consider the following emerging trends. Manufacturing activities are critical for economic growth and should therefore be reshored. Industrial policy is important to support manufacturing. Strategic industries should be subsidised (and even winners there should be picked). Certain trade restrictions are necessary to level the playing field and protect domestic industry and jobs. Regulation of financial markets is essential. Financialisation should be controlled. Globalisation should be slowed and reversed. Capital controls are good and external borrowings should be constrained. The inflation target should be higher. Deficits and public debts are fine as long as their growth is slower than the economic growth rate. Rent controls may be required to make housing affordable. Government financing is critical for the green transition. Government intervention in general is important for economic growth. And so on.