The New Economics of Industrial Policy

August 2023, Paper: "There are few economic policies that generate more kneejerk opposition from economists than industrial policy. This has not stopped governments from making abundant use of it, even when they seem ideologically hostile to it.1 The salience of industrial policy has risen greatly in recent years, as governments have increasingly engaged in self-conscious industrial policies as they address a variety of problems – the green transition, resilience of supply chains, the challenge of good jobs, and geopolitical competition with China. Academic economists have often acted as by-standers (and often naysayers) as policies such as the CHIPS and IRA acts in the U.S. have been developed and implemented."