Philippe Aghion, Helene Maghin, André Sapir, 25 June 2020

The COVID-19 pandemic has shed light on the structural dichotomy between the models of capitalism operating in Europe and the US; the former offers better protection for its citizens while the latter shows greater economic dynamism. This column argues that for all the harm COVID-19 has caused, the crisis has also provided an opening to rethink the versions of capitalism practised on both sides of the Atlantic. Some degree of convergence towards a better model is desirable, the authors suggest, and perhaps even possible.

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You are invited to a CEPR / LSE IGA / SPP webinar on:

Shrinking Capitalism

Join us on Thursday 4 June 2020
13:00-14:30 (BST, London), 14:00 - 15:30 (CST)

 

Panellists:
Philippe Aghion, Professor of economics, College de France and LSE, CEPR
Samuel Bowles, Director of Behavioral Sciences, Santa Fe Institute
Wendy Carlin, Professor of economics, University College London, CEPR
David Soskice, Professor, LSE School Professor of Economics and Political Science, LSE

Chair and Moderator:
Erik Berglof, Director, Institute of Global Affairs, LSE School of Public Policy and Fellow, CEPR 

The COVID 19 pandemic along with climate change has dramatized the obsolescence of the benchmark paradigm that still forms the basis of undergraduate teaching and popular discussion of economics. As was the case in the aftermath of the Second World War and the Great Depression a combination of new problems and new developments in economic theory provide the groundwork for a new paradigm. This would allow us to escape the limits of the government versus markets policy menu and encompass motivations beyond material gain and compliance with governmental authority to include ethical motivations of solidarity and duty that have underpinned successful anti-COVID policies.

Join Philippe Aghion, Samuel Bowles, Wendy Carlin, David Soskice and Erik Berglof in this webinar discussion.

Register online: https://us02web.zoom.us/webinar/register/8015910027042/WN_4O45LKHBS8Gc8PFMF2DoRw

Pascal Lamy, 27 November 2019

Diane Coyle, 25 June 2018

Samuel Bowles, Alan KIrman, Rajiv Sethi, 08 December 2017

Hayek pioneered the informational view of markets in which prices are messages, and his dynamic vision of the economy provides the basis of an alternative to the equilibrium methodology that today underpins the economics of information. This column argues, however, that these contributions do not support, and may even give reason to doubt, the limited government policies that Hayek advocated.

Theresa Finley, Raphael Franck, Noel Johnson, Stelios Michalopoulos, 02 December 2017

Political revolutions often bring swift regime change leading to short-run economic change, but the long-term consequences are less clear. Some argue that revolutions pave the way for capitalist market growth, while others argue they are only political in nature with limited economic consequence. This column uses extensive evidence from the French Revolution to show that the effects vary across the country and over time. The analysis speaks to questions of concern to developing countries regarding the relationship between institutional change, inequality, and long-run economic development. 

Daron Acemoğlu, James Robinson, Thierry Verdier, 21 November 2012

Amid the current economic slowdown there is renewed interest in what type of capitalism fosters growth and best improves welfare. This column argues Nordic-style capitalism may provide higher welfare but in an interconnected world, it may be the cut-throat US capitalism, with its extant inequalities, that makes possible the existence of more cuddly Nordic societies.

Richard Pomfret, 22 May 2012

Politicians who rail against socialism or capitalism always adopt a more moderate stance after they come into office. This column argues this is because we are still experiencing the consequences of the industrial revolution. The current state of that process involves a widely accepted compromise between aggregate prosperity and distributional equality.

Andrei Shleifer, 05 February 2012

Twenty years ago, communist countries began their shift towards capitalism. What do we know now that we didn’t know then? Harvard's Andrei Shleifer, the Russian-born, American-trained economist, provides his answers and their relevance for contemporary policymakers.

CEPR Policy Research