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EEAG Report on the European Economy 2022 - Economic Policy for the Next Decade: A Changed Role of Governments?

Author

Listed:
  • Torben M. Andersen
  • Giuseppe Bertola
  • Clemens Fuest
  • Cecilia Garcia-Peñalosa
  • Harold James
  • Jan-Egbert Sturm
Abstract
The coronavirus crisis has shaped economic policy in a way that differs from the policies that prevailed before the crisis, bringing to the fore political challenges such as climate change, technological change, aging, and inequality, but also possible de-globalization. Governments around the world have taken drastic measures to protect the economy and support households, jobs, and businesses. This has also led to a rethinking of the debate about the role of government. Some believe that governments should continue to take a more active role in the post-pandemic period. Others argue that the situation is so special and different that it has no implications for the future of government. Still others object that the weaknesses and inadequacies of government responses to the pandemic reflect the limited effectiveness of the public sector in general. This year’s EEAG Report on the European Economy takes a broader perspective to relate the current situation to economic and political developments since the 1970s and to examine whether and how the role of governments will change after the Covid-19 crisis.

Suggested Citation

  • Torben M. Andersen & Giuseppe Bertola & Clemens Fuest & Cecilia Garcia-Peñalosa & Harold James & Jan-Egbert Sturm, 2022. "EEAG Report on the European Economy 2022 - Economic Policy for the Next Decade: A Changed Role of Governments?," EEAG Report on the European Economy, CESifo, vol. 0, pages 01-80, March.
    • Handle: RePEc:ces:eeagre:v::y:2022:i::p:01-80
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