There are plenty of smart policies that can help to address the economic factors that have fueled support for populist politicians over the last year. But, even as economists promote such measures, they must remain humble about the efficacy of their solutions.
CAMBRIDGE – The past year has witnessed several attacks, including a few near misses, on the rules-based global order that has undergirded prosperity in the world’s advanced economies and the rapid growth of many emerging economies. A lively debate has ensued about whether the fundamental cause of such populist attacks is economic or cultural. I suspect the answer is a bit of both, especially because cultural explanations raise the question of why now, whereas economic explanations provide a ready answer: the significant slowdown of income growth.
CAMBRIDGE – The past year has witnessed several attacks, including a few near misses, on the rules-based global order that has undergirded prosperity in the world’s advanced economies and the rapid growth of many emerging economies. A lively debate has ensued about whether the fundamental cause of such populist attacks is economic or cultural. I suspect the answer is a bit of both, especially because cultural explanations raise the question of why now, whereas economic explanations provide a ready answer: the significant slowdown of income growth.