On Institutions and Economic Policy: A Response to Michael Jacobs

Abstract In his article ‘After neoliberalism: economic theory and policy in the polycrisis’ in this journal, Michael Jacobs sets out the importance of institutional context to politics and policy making. This article concurs with this emphasis and explores the importance of specific existing institutions such as the Low Pay Commission and Office for Budget Responsibility in our system of economic governance. It considers the case for institutional ‘deepening’ and reform as well as some potential misconceptions about the role of organisations like these in contemporary politics. Looking to the years ahead, it argues that the terrain on which politics is likely to be contested will involve a larger role for the state and continued debate about the appropriate role of institutions.