Over the past four decades, central banks, antitrust agencies and economic regulators have taken an increasingly important role on both sides of the Atlantic. They have tended to operate at arms-length from elected governments and with a high degree of cross-party support for their operational independence.
But this is now changing. Populist parties and leaders in the United States and Europe want greater democratic control over institutions that they see as unaccountable. Meanwhile, in an effort to hold on to their electoral support, mainstream parties have taken on board parts of the populists’ critique. Depending on how this shift plays out, it could have profound implications – for economic welfare, democracy and the rule of law.
In this essay for the Social Market Foundation I consider what has led to this shift, what its implications are and what can be done about it.
