New industrial policies will not help economic stability

This report has argued that a profound shift in economic policy is under way. For years politicians have paid lip service to industrial policy and protectionism, and in some cases implemented those policies. But now they are going full tilt, pursuing homeland economics with enthusiasm. Across the rich world, governments are implementing more than ten times as many such policies as they were each year in 2010-15. If their manifestos are anything to go by, politicians plan a lot more in the coming years—to achieve dominance in renewable energy, electric transport and generative ai. It is the biggest policy shift in a generation.