the role of
THE ROLE OF
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.
THE ROLE OF
Decaying infrastructure and a lack of investment in education and innovation expose the weaknesses of an overly market-driven paradigm.
What went wrong
Reducing the role of the state in the economy was seen as the best way to ensure high levels of growth.
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.
5 POSSIBLE WAYS THAT ARE DISCUSSED TO REDEFINE THE ROLE OF THE STATE
Boost investment in education, healthcare, infrastructure. This could more than pay for itself.
Use fiscal policy as a tool for macroeconomic stabilization and to boost economic activity.
Use of state as an entrepreneurial actor, investing in and deploying new technologies.
Central banks could distribute money directly to citizens in an attempt to boost consumer confidence and consumption.
Demonstrate the indispensability of the state by tackling monopolistic capitalism.
THE STEEP DECLINE IN NET PUBLIC INVESTMENT
Why Public Value Creation Should Be Brought Back to the Center Stage of the Economy
In a recent contribution, Mariana Mazzucato and Josh Ryan-Collins argue that governments should move from market-fixing to market-shaping, creating a revised concept for public value.
Super depreciation - A recipe against the approaching recession?
In its coalition agreement, the traffic light government announces an investment premium for "climate protection and digital assets" - the "super depreciation". What economic effects does the government expect from the bonus? And: Does it make sense, also against the background of the current crises, to only focus the measure on digital and climate? We discussed this with Clemens Fuest, Markus Herbrand, Sandra Detzer and Achim Truger.
Super Depreciations – The recession remedy? Short Cut Highlights
In its coalition agreement, the traffic light government announces an investment premium for "climate protection and digital assets" - the "super depreciation". What economic effects does the government expect from the bonus? Clemens Fuest, Sandra Detzer, Achim Truger and Markus Herbrand in Short Cut.
New Roles for the State: Rethinking Government at the Turning of Ages
100 Billion for the Bundeswehr – A Turnaround in Fiscal Policy?
The German armed forces are to receive 100 billion - without violating the debt limits. What does this mean for the course of the Federal Minister of Finance? Will savings have to be made elsewhere? Watch the discussion with Sebastian Dullien, Jens Südekum, Hubertus Bardt and Philippa Sigl-Glöckner as re-live.
Annual Economic Report: Do We Now Measure Prosperity in Germany anew?
Interview: Annual Economic Report – Rethinking Prosperity?
Would a wealth tax really reduce inequality?
New Paradigm Knowledge Base – Update on the role of the state
What role should the state play in innovation policy? How can the infrastructure investments needed for climate protection be financed by the state? Does a socially acceptable implementation of the Green New Deal require the EU to relax its debt rules?
On how to create fiscal space through public enterprises
“Mission Economy: A Moonshot Guide to Changing Capitalism”
“Mission Economy” - Short Cut Highlights
Election analysis: Scholz’s respect formula appealed to voters
Election narratives of the SPD candidate for chancellor with very high approval ratings among the population / Core statements in the CDU program significantly less popular / Analysis of a Civey survey commissioned by the Forum New Economy
Agenda for Germany's future finance minister
Fiscal policy trade-offs will be a key issue in Germany's coalition negotiations. From debt brakes to climate investments, what's facing the next government? That was the main question of a panel organized by NEF and Forum New Economy.
OTHER MAIN TOPICS
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.