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"Great crises lead to great changes in economic policy"

IE Business School's Full Professor Rafael Pampillón participated in a discussion at the NCID of Institute for Culture and Society on the economic consequences of the conflict in Ukraine.

23 | 03 | 2022

"Big crises lead to big changes in economic policy," said Rafael Pampillón, Full Professor of Economics at IE Business School, at the University of Navarra. 

The expert presented his book Cuando los votantes pierden la paciencia. Radical Cases of Economic Policy at the Navarra Center for International Development (NCID) of the Institute for Culture and Society (ICS). The event was also attended by Luis Ravina, director of the NCID, and Emili J. Blasco, professor of International Office of the University of Navarra. The activity was awarded the Mecna distinction for cultural patronage by the Government of Navarra. 

Rafael Pampillón explained that throughout history , economic crises have caused citizens to become fed up with their government: "Sometimes at Economics things go wrong and there are two alternatives: a replacement, which is what normally happens in democracies, and continuity, which is what usually happens in dictatorships". 

When Voters Lose Patience is an invitation to travel through economic history. "The common thread of the book is that major crises lead to major changes in economic policy," said Pampillón. 

Forecasts: more than 10% inflation

The presentation of the book was followed by a discussion among the guests on the economic consequences of the war in Ukraine. "In recent decades, Russia has been more about guns and less about butter. European sanctions are very tough and will hit the Russians hard. Russia could lose the war", said Pampillón. 

As for US foreign policy, he argued that "they wanted to isolate China with a trade war to prevent it from becoming the world's leading economic power, and now the Chinese have moved closer to Russia". 

Pampillón also stated that inflation is likely to exceed 10% in June and that it is necessary to lower taxes temporarily. "Inflation will last as long as the war lasts", stressed speaker.