Manifesto for a New Economic Policy Publication date : April 3, 2014
Pr. Philippe Aghion is a professor at Harvard University, specialising in theories of growth and innovation. Gilbert Cette, the Director of Microeconomic and Structural Studies at the Bank of France, is an expert in productivity and labour market issues. Elie Cohen is a research director at the French National Centre for Scientific Research (National Political Science Foundation) and an expert in economic, especially industrial, institutions and policies.
The current French administration’s first year in office was an annus horribilis. In a highly restricted economic environment the government’s actions seemed of no avail. And as public opinion swung between exasperation and incomprehension, the government was placed in a fragile political position.
But France can bounce back and recover its economic growth, notably by catching up with new technologies — an opportunity that is not to be missed, argue the authors.
If France is to recover, it must break with simplistic Keynesianism, which abuses fiscal pressure to eliminate public deficits. After that, it will have to implement structural reforms in order to restore upward social mobility and stimulate growth through innovation. Coherence is the programme’s guiding principle since the French are anxiously waiting for someone to tackle their problems head on and for the necessary reforms to be undertaken, without blinders and without taboos.
• A blueprint for a truly reformist Left.
• A quantified evaluation of the proposed reforms and their impact measured in growth figures.
• A manifesto, by three brilliant economists, outlining the road to French recovery.