Rethinking reforms in times of slow growth and populism

LINK TO THE BLOG POST ENGLISH

Governments are puzzled how to respond to the conflicting demands of reforming the economy and increase growth on the one hand and to cater to disappointed voters who feel left behind on the other hand. This blog post argues that established parties can address these concerns by focussing on reforms that promote equity and efficiency at the same time. For example, they can reinforce social safety nets through retraining. A second option is to tackle vested interests in product markets rather than further liberalizing labour markets.