Institutional redesign in order for economic changeListen to this articleThe Nobel Prize in economics was awarded both this year and last year to scholars who, in different ways, emphasised the importance of institutions to economic growth. For the 2024 laureates -- Daron Acemoglu, Simon Johnson, and James A Robinson -- the key to economic prosperity lies in the rule of law and enabling institutions. When questions of institutional design emerge, they tend to be restricted to specific bodies, such as central banks. What is preventing less productive incumbent firms from exiting the market, which Prof Aghion and Prof Howitt found is crucial for economic dynamism? As people in advanced economies grow increasingly disillusioned with the economic establishment, the institutions underpinning it will inevitably change.

Source: Bangkok Post December 30, 2025 00:08 UTC