Populism is on the rise, the economy is becoming increasingly digital, trade tensions have intensified and we may even see a reversal of globalization, there are concerns about climate change, and policy uncertainty surrounding Brexit but also more globally. All of these challenges increase uncertainty and may affect economic structures in the longer-term. Evidence-based policy is needed more than ever.
How else are we to answer key questions facing society? We need to understand the drivers of inflation, productivity and growth, the role of policy, the effects of post-crisis financial sector reforms, and, more generally, the effectiveness of policies that internalize externalities – be it in the financial sector or with regard to environmental spillovers.