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The London Consensus: Economic Principles for the 21st Century
In this Book
Additional Information
The London Consensus: Economic Principles for the 21st Century
Book
Tim Besley
Irene Bucelli
Andrés Velasco
Leonard Wantchekon
Anthony Venables
John Van Reenen
Miguel Urquiola
Paul Tucker
Ranjeeta Thomas
Almudena Sevilla
Kirsten Sehnbruch
Thomas Sampson
Dani Rodrik
Elizabeth Robinson
Hélène Rey
Ricardo Reis
Danny Quah
Carol Propper
Lant Pritchett
Christopher Pissarides
Jean Pisani-Ferry
Barbara Petrongolo
Torsten Persson
Chukwumerije Okereke
Joana Naritomi
Alistair McGuire
Michael Marmot
Isabela Manelici
Nora Lustig
Santiago Levy
Margaret Levi
Adnan Khan
Ravi Kanbur
Şebnem Kalemli-Özcan
Paul Johnson
Dan Honig
Ricardo Hausmann
Chryssi Giannitsarou
Pierre-Olivier Gourinchas
Francisco H. G. Ferreira
Dave Donaldson
Tim Dobermann
Ashwini Deshpande
Ernesto Dal Bó
Diane Coyle
Joan Costa-i-Font
Pedro Carneiro
Robin Burgess
Timo Boppart
Olivier Blanchard
Nicholas Barr
Pranab Bardhan
Oriana Bandiera
Matthew Andrews
Philippe Aghion
2025
Published by:
LSE Press
Table of Contents
View Citation
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
summary
A generation ago, the so-called Washington Consensus laid out a series of dos and don’ts for policymakers around the world. Today, that vision is recognised as having fallen short in a number of ways – particularly in its neglect of the social and institutional factors that are indispensable for achieving sustained growth and for building fairer and more cohesive societies.

The immense challenges humanity faces are easy to list: climate change, pandemics, social inequalities, the far-reaching effects of the tech revolution and AI, a fragmenting world economy, and a wave of populism and political polarisation that has undermined support for liberal democracy in many countries. It is much harder to identify a set of new ideas – and policies – that will solve these seemingly intractable global problems.

In this new world, political leaders and policymakers need guidance and principles that can assist when choosing among policy alternatives. To this end, the editors of this volume convened over 50 of the world’s leading economists and policy experts at the London School of Economics and Political Science (LSE). The London Consensus: Economic Principles for the 21st Century is the result of these exchanges. It is not intended as a one-size-fits-all set of economic remedies, but an exercise in assembling the best available evidence and ideas to foster dialogue, and ultimately to develop a set of principles that can address the urgent political, social and economic tasks ahead.

For more on the London Consensus project, see: https://www.lse.ac.uk/school-of-public-policy/Research/London-Consensus
Table of Contents
View Full Book
Cover
Cover
Cover
Title Page
Title Page
Title Page
Contents
Contents
Contents
List of figures and tables
pp. xvi-xviii
List of figures and tables
List of figures and tables
About the editors and contributors
pp. xix-xxxvi
About the editors and contributors
About the editors and contributors
Preface
p. xxxvii
Preface
Preface
1. Towards a London Economic Consensus: an introduction
Tim Besley and Andrés Velasco
pp. 1-38
1. Towards a London Economic Consensus: an introduction
1. Towards a London Economic Consensus: an introduction
PART I INNOVATION AND PRODUCTIVITY
2. Fostering green and inclusive productivity growth
Philippe Aghion and John Van Reenen
pp. 41-60
2. Fostering green and inclusive productivity growth
2. Fostering green and inclusive productivity growth
Response to Philippe Aghion and John Van Reenen
Diane Coyle
pp. 61-69
Response to Philippe Aghion and John Van Reenen
Response to Philippe Aghion and John Van Reenen
Response to Philippe Aghion and John Van Reenen
Timo Boppart
pp. 70-76
Response to Philippe Aghion and John Van Reenen
Response to Philippe Aghion and John Van Reenen
3. On productivism
Dani Rodrik
pp. 77-96
3. On productivism
3. On productivism
Response to Dani Rodrik
Jean Pisani-Ferry
pp. 97-103
Response to Dani Rodrik
Response to Dani Rodrik
Response to Dani Rodrik
Pierre-Olivier Gourinchas
pp. 104-114
Response to Dani Rodrik
Response to Dani Rodrik
PART II TRADE
4. International trade since the Washington Consensus: the gains and the pains
Dave Donaldson
pp. 117-132
4. International trade since the Washington Consensus: the gains and the pains
4. International trade since the Washington Consensus: the gains and the pains
Response to Dave Donaldson
Thomas Sampson
pp. 133-137
Response to Dave Donaldson
Response to Dave Donaldson
Response to Dave Donaldson
Anthony Venables
pp. 138-142
Response to Dave Donaldson
Response to Dave Donaldson
5. Export-led growth
Ricardo Hausmann
pp. 143-173
5. Export-led growth
5. Export-led growth
Response to Ricardo Hausmann
Isabela Manelici
pp. 174-180
Response to Ricardo Hausmann
Response to Ricardo Hausmann
Response to Ricardo Hausmann
Danny Quah
pp. 181-194
Response to Ricardo Hausmann
Response to Ricardo Hausmann
PART III MACROECONOMIC POLICY
6. Fiscal policy and public debt
Ricardo Reis and Andrés Velasco
pp. 197-210
6. Fiscal policy and public debt
6. Fiscal policy and public debt
Response to Ricardo Reis and Andrés Velasco
Olivier Blanchard
pp. 211-214
Response to Ricardo Reis and Andrés Velasco
Response to Ricardo Reis and Andrés Velasco
Response to Ricardo Reis and Andrés Velasco
Chryssi Giannitsarou
pp. 215-218
Response to Ricardo Reis and Andrés Velasco
Response to Ricardo Reis and Andrés Velasco
7. Monetary and financial policies
Hélène Rey
pp. 219-237
7. Monetary and financial policies
7. Monetary and financial policies
Response to Hélène Rey
Paul Tucker
pp. 238-244
Response to Hélène Rey
Response to Hélène Rey
Response to Hélène Rey
Şebnem Kalemli-Özcan
pp. 245-250
Response to Hélène Rey
Response to Hélène Rey
PART IV LABOUR MARKET
8. Labour markets and the future of work
Christopher Pissarides
pp. 253-269
8. Labour markets and the future of work
8. Labour markets and the future of work
Response to Christopher Pissarides
Kirsten Sehnbruch
pp. 270-280
Response to Christopher Pissarides
Response to Christopher Pissarides
9. Labour markets and gender inequality
Oriana Bandiera and Barbara Petrongolo
pp. 281-291
9. Labour markets and gender inequality
9. Labour markets and gender inequality
Response to Oriana Bandiera and Barbara Petrongolo
Ashwini Deshpande
pp. 292-299
Response to Oriana Bandiera and Barbara Petrongolo
Response to Oriana Bandiera and Barbara Petrongolo
Response to Oriana Bandiera and Barbara Petrongolo
Almudena Sevilla
pp. 300-310
Response to Oriana Bandiera and Barbara Petrongolo
Response to Oriana Bandiera and Barbara Petrongolo
PART V COHESION, EQUITY AND SOCIAL POLICY
10. Is there a 'new consensus' on inequality?
Francisco H. G. Ferreira
pp. 313-339
10. Is there a 'new consensus' on inequality?
10. Is there a 'new consensus' on inequality?
Response to Francisco H. G. Ferreira
Ravi Kanbur
pp. 340-345
Response to Francisco H. G. Ferreira
Response to Francisco H. G. Ferreira
Response to Francisco H. G. Ferreira
Nora Lustig
pp. 346-350
Response to Francisco H. G. Ferreira
Response to Francisco H. G. Ferreira
11. Welfare state
Nicholas Barr
pp. 351-378
11. Welfare state
11. Welfare state
Response to Nicholas Barr
Santiago Levy
pp. 379-384
Response to Nicholas Barr
Response to Nicholas Barr
Response to Nicholas Barr
Paul Johnson
pp. 385-390
Response to Nicholas Barr
Response to Nicholas Barr
12. Addressing the learning crisis: an emergent consensus
Lant Pritchett
pp. 391-420
12. Addressing the learning crisis: an emergent consensus
12. Addressing the learning crisis: an emergent consensus
Response to Lant Pritchett
Pedro Carneiro
pp. 421-425
Response to Lant Pritchett
Response to Lant Pritchett
Response to Lant Pritchett
Miguel Urquiola
pp. 426-432
Response to Lant Pritchett
Response to Lant Pritchett
13. Towards resilient and sustainable universal healthcare coverage
Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
pp. 433-463
13. Towards resilient and sustainable universal healthcare coverage
13. Towards resilient and sustainable universal healthcare coverage
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Carol Propper
pp. 464-466
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Michael Marmot
pp. 467-472
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Response to Alistair McGuire, Joan Costa-i-Font and Ranjeeta Thomas
Part VI ENVIRONMENT AND CLIMATE CHANGE
14. Climate and environment: what we know and what we need to know
Robin Burgess and Tim Dobermann
pp. 475-506
14. Climate and environment: what we know and what we need to know
14. Climate and environment: what we know and what we need to know
15. Tackling climate change in low- and middle-income countries
Elizabeth Robinson and Chukwumerije Okereke
pp. 507-532
15. Tackling climate change in low- and middle-income countries
15. Tackling climate change in low- and middle-income countries
PART VII POLITICAL ECONOMY AND STATE CAPACITY
16. From liberal economic policies to liberal political institutions? Democracy, development cluster and wellbeing
Tim Besley and Torsten Persson
pp. 535-563
16. From liberal economic policies to liberal political institutions? Democracy, development cluster and wellbeing
16. From liberal economic policies to liberal political institutions? Democracy, development cluster and wellbeing
Response to Tim Besley and Torsten Persson
Margaret Levi
pp. 564-567
Response to Tim Besley and Torsten Persson
Response to Tim Besley and Torsten Persson
Response to Tim Besley and Torsten Persson
Leonard Wantchekoncaba
pp. 568-572
Response to Tim Besley and Torsten Persson
Response to Tim Besley and Torsten Persson
17. State capacity
Dan Honig, Adnan Khan and Joana Naritomi
pp. 573-601
17. State capacity
17. State capacity
Response to Dan Honig, Adnan Khan and Joana Naritomi
Matthew Andrews
pp. 602-606
Response to Dan Honig, Adnan Khan and Joana Naritomi
Response to Dan Honig, Adnan Khan and Joana Naritomi
Response to Dan Honig, Adnan Khan and Joana Naritomi
Ernesto Dal Bó
pp. 607-614
Response to Dan Honig, Adnan Khan and Joana Naritomi
Response to Dan Honig, Adnan Khan and Joana Naritomi
Afterword
Pranab Bardhan
pp. 615-620
Afterword
Afterword
Index
pp. 621-632
Index
Index
Back Cover
Back Cover
Back Cover
Additional Information
ISBN
9781911712442
Related ISBN(s)
9781911712435, 9781911712459, 9781911712466
MARC Record
OCLC
1526586108
Pages
632
Launched on MUSE
2026-01-15
Language
Open Access
Yes
Creative Commons
CC-BY-NC
2025
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