IMF Warns of Risks in Aggressive Industrial Policy for Innovation

Wednesday, 10 April 2024, 13:00

The International Monetary Fund cautions against aggressive industrial policies in powerful economies, flagging potential pitfalls and subsidy wars. Governments are advised that innovation as a solution for slow growth isn't a one-size-fits-all remedy. Be mindful of the challenges and limitations when implementing industrial strategies.
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IMF Warns of Risks in Aggressive Industrial Policy for Innovation

IMF Warns of Risks in Aggressive Industrial Policy for Innovation

Aggressive government intervention could create expensive mistakes and prompt subsidy battle.

Risks of Industrial Policy

  • Expensive Mistakes: Aggressive use of industrial policy could lead to costly errors.
  • Subsidy Wars: Risk of triggering a tit-for-tat subsidy battle.

Aggressive use of industrial policy by the world’s most powerful economies risks becoming an expensive mistake that could trigger a tit-for-tat subsidy war, the International Monetary Fund has said.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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