The shift from a need for supply-side policies to a need for demand-side policies

In the "before" economy (before the 2008 crisis), countries competed for export market shares thanks to vigorous global trade that could drive growth. In order to take advantage of it, companies had to be competitive, hence the importance of supply-side policies that improved cost competitiveness. In the "after" economy (now and in the future), global deindustrialisation is lead ing to weak world trade and exports can no longer be the growth driver. It therefore requires vigorous domestic demand, which explains the new importance of demand policies. This does not mean that competitiveness should be ignored, but that it is more important than ever to avoid sluggish domestic demand.