Economic Policy Issues for the Next Decade

There are several reasons why it has become important to rethink economic policy. From a European perspective, these include the new single currency, EU enlargement spanning Central and Eastern European countries, sluggish growth combined with the end of productivity convergence towards the USA and insufficient creation of new jobs. From a transatlantic perspective, important aspects are growing differences in economic policy and the potential rise of conflicts between Europe and the USA, e.g. in trade, competition and health issues. "Economic Policy Issues for the Next Decade" touches upon the greater part of these topics. It starts out with an overview by Joseph Stiglitz on policy issues, followed by a discussion of macroeconomic policy, the problems of an ageing society and EU enlargement. The next section analyses substantial differences between Europe and the US in terms of taxation and the role of public finance. Countries individually and the EU in general will find their relative competitiveness decided by the level of investments in new technologies and their progression towards a Science-based Economy. The final section considers the role of economists in shaping the economic agenda and their importance as policy advisors.