2.2d How can macroeconomic policy best prepare for and respond to shocks, while creating a conducive environment for growth? What options are there for policymakers to tackle elevated debt levels, while protecting investment for growth and essential social spending?  How should this approach vary by income level?

Background

Research supports policy makers to adjust to the changing global economic environment, to deliver sustainable, inclusive growth that is resilient to a variety of shocks. Global changes in technology, trade and climate are re-shaping the pathways open to countries of all income levels to drive structural transformation and employment-rich growth, while increased debt levels are reducing policymakers’ room to manoeuvre.

Research and evidence are also needed to bring a suite of broader economic tools to spur the private sector and increase productivity through increased investment, trade, technological upgrading and improved human capital and infrastructure.

Next steps

Get in touch with [email protected]

Related UKRI funded projects

  • Working towards a stable and sustainable growth path - Centre For Macroeconomics ESRC Centres Transition Review

    Ten years after the onset of the financial crisis, the world still faces many macroeconomic challenges, such as increased inequality, low growth rates, low real interest rates, continued deleveraging, and a need for new ...

    Funded by: ESRC

    Lead research organisation: London School of Economics and Political Science

    Why might this be relevant?

    The project focuses on macroeconomic policy, debt levels, and policy tools to address economic challenges.

  • Rethinking Macroeconomics

    The need for new ideas in macroeconomics is evident. Most macroeconomists not only failed to recognise the weaknesses in the global economy before the financial crisis, their main macroeconomic model specifically exclude...

    Funded by: ESRC

    Lead research organisation: National Institute of Economic and Social Research

    Why might this be relevant?

    The project aims to challenge and transform macroeconomics to be more relevant for policy making.

  • Rebuilding Macroeconomics

    The need for new ideas in macroeconomics is evident. Most macroeconomists not only failed to recognise the weaknesses in the global economy before the financial crisis, their main macroeconomic model specifically exclude...

    Funded by: ESRC

    Lead research organisation: UNIVERSITY COLLEGE LONDON

    Why might this be relevant?

    The project focuses on rebuilding macroeconomics to address weaknesses and provide new ideas for policy making.

  • Economic Growth and Economic Performance Over The Long Run: Frontier Research in Economic and Social History

    When the Queen asked a group of academics "why nobody saw it [the recession] coming?" during a visit to the London School of Economics in November 2008, she echoed the thoughts of many people. Prime Minister Go...

    Funded by: ESRC

    Lead research organisation: University of Essex

  • Long-Run Consequences of Business-Cycle Fluctuations

    The UK economy is suffering from low growth. According to the International Monetary Fund World Economic Outlook forecasts published in January 2023, not only will the UK be the country with the lowest GDP growth among t...

    Funded by: ESRC

    Lead research organisation: London Business School

  • Macroeconomic Fluctuations and Inequality

    In the aftermath of the 2008 financial crisis, unemployment increased dramatically in Western economies. More than four years after the financial crisis, the unemployment rate remains above 8% in the US and the UK, and a...

    Funded by: ESRC

    Lead research organisation: London School of Economics and Political Science

  • GCRF_NF278 Building evidence on households, firms and value chains to support economic policy decisions under COVID-19

    IGC has worked with policymakers in the nine named countries to identify key research questions to understand how COVID-19 is impacting their economy, how the economic recovery can be accelerated, which policy interventi...

    Funded by: GCRF

    Lead research organisation: London School of Economics and Political Science

  • Modelling the effects of pandemic control measures and financial support on businesses, regions and households

    The economic consequences of the COVID-19 pandemic are far from over. Short-term interventions to contain the spread of the virus and its economic fallout are gradually being unwound. Now, as the lockdown is being lifted...

    Funded by: COVID

    Lead research organisation: Institute for Fiscal Studies

  • Supporting fiscal policy decisions in the crisis

    We are going through an economic crisis. The government has responded with an unprecedented policy package, costing many tens of billions of pounds over just a few months - paying for employees to be furloughed, making p...

    Funded by: COVID

    Lead research organisation: Institute for Fiscal Studies

  • Centre for Macroeconomics (an ESRC Legacy Centre)

    The Centre for Macroeconomics is a leading research centre for the study of macroeconomics in the UK. It organizes many conferences and workshops, where the community of macroeconomists comes together to discuss their wo...

    Funded by: ESRC

    Lead research organisation: London School of Economics and Political Science

Similar ARIs from other organisations

International In the context of rising global debt levels, do advanced economies and emerging markets have the policy space necessary to respond to the fiscal and economic consequences of future shocks, and if not what actions should they take to build this capacity? HMT, 2024
Full details