The presentation, titled "New Macroeconomic Paradigms: the Role of the State in the Post-COVID Era," analyzes the paradigmatic shift created by the pandemic in the global economic order within a comprehensive historical and theoretical framework.
The pandemic has reshaped economic thought.
The study emphasizes that COVID-19 not only disrupted supply-demand balances but also challenged the belief in "spontaneous market equilibrium," the fundamental assumption of the neoliberal era. The pandemic has ushered in a new era in which the state has once again emerged as a central economic actor.
The transformation of the state's economic role is examined within three paradigms.
The study comparatively examines the role of the state in the economy within the framework of:
• The limited state approach of the classical approach,
• The effective demand management and welfare state model of the Keynesian era,
• The minimal state emphasis of the neoliberal wave.
The study demonstrates that COVID-19 has broken this cycle and that the "active state" model has resurfaced.
The New Macroeconomic Paradigm: Resilience, Sustainability, and Social Inclusion
According to the academics' analysis, the post-COVID era demonstrates that the state has evolved from being an actor solely intervening in times of crisis to a more guiding role:
• increasing economic resilience,
• prioritizing sustainable growth,
• building on social inclusion.
However, new risks are also on the agenda…
The study also highlights new risk areas brought about by increased state intervention, such as:
• fiscal sustainability,
• productivity losses,
• democratic balance and accountability.
Main Question: Is the paradigm shift permanent?
The presentation's main discussion topic is based on the following critical question:
“Is the state's comeback a sign of a permanent paradigmatic shift in macroeconomic thinking, or a temporary deviation specific to the crisis period?”
The study makes an original contribution to the literature by examining this question in light of historical examples and theoretical discussions.
