THE STATE

A new paradigm for fiscal policy?

By Xavier Ragot, OFCE, Paris.

PUBLISHED

1. NOVEMBER 2019

Ragot shows why Europe needs institutionalized coordination of national fiscal policies, but also stabilizing tools to share risk among European member-states and their citizens, notably to mitigate the costs arising from unemployment.

 

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ABOUT THE STATE

KNOWLEDGE BASE

For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.

ARTICLE OVERVIEW