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Why Industrial Policy Is Back

For decades following the Reagan-Thatcher revolution and the emergence of the Washington Consensus in the 1980s, economic orthodoxy was allergic to policies that imply "picking winners," rather than letting the market decide. But we now know that the real question is not whether such policies should exist, but how to manage them.

CAMBRIDGE – After decades of relegation to the fringes of economic thinking, industrial policy is making a comeback. With more countries enacting measures to support certain industries and establish new ones, the revival of industrial policy was a major topic at this year’s meeting of the World Economic Forum in Davos.

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