“Globalization: Challenges for Economic policy”, Miklós Szanyi (IWE CERS, Hungary)

Economic systems work in specific technological environment that determine not only the production process (the real economy), but also markets, business models, consumption patterns (the way of life) and also the institutional background of the economy. These parts of the system must evolve in a balanced way. The regulation and control over economic processes (economic policy) must also comply. The process of globalization has set up new technological and business conditions since the 1970s and 80s. New challenges have emerged for economic policy. This paper analyzes very briefly four major challenges and the initial yet still not adequate policy responses to them. The four areas are financialization, digitalization, active structural policy options and sustainable development. The main message is that the world still lacks adequate policy responses to the challenges. This fact is the more worrisome since the new technological paradigm, the cyberbusiness and industry 4.0 is evolving with considerable speed. 

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