Redefining the role of the state

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.

Europe

New Paradigm Knowledge Base

  • The Challenge

    Decaying infrastructure and a lack of investment in education and innovation expose the weaknesses of an overly market-driven paradigm

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  • What went wrong?

    Reducing the role of the state in the economy was seen as the best way to ensure high levels of growth.

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  • New Economy in Progress

    The challenges of our time require us to rethink the role of the state and the need for a more active fiscal policy.

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5 possible ways that are discussed to redefine the role of the state

  1. 1. Boost investment in education, healthcare, infrastructure. This could more than pay for itself.
  2. Use fiscal policy as a tool for macroeconomic stabilization and to boost economic activity
  3. 3. Use of state as an entrepreneurial actor, investing in and deploying new technologies.
  4. 4. Central banks could distribute money directly to citizens in an attempt to boost consumer confidence and consumption.
  5. 5. Demonstrate the indispensability of the state by tackling monopolistic capitalism.

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