The Role of Government in Economic Growth

The importance of a well-structured incentive system for fostering new ideas is crucial for societal progress. Economists stress that the government must balance knowledge growth and equitable benefit distribution.


The Role of Government in Economic Growth

The importance of developing a complex system of stimuli, capable of generating new ideas, is that without it society faces a common deficit in its ability to progress. This deficit is more pronounced than in less privileged layers of the population. The lack of a system of stimuli also arises if it is too artificial or excessively limited.

With this understanding, one can grasp the main line of importance that leading economists highlight, who publish new scientific works containing contemporary scientific ideas. Research in the field of economics shows that the relevance of managing tension between objectives – increasing knowledge and simultaneously ensuring the distribution of benefits from this growth on a broader base – lies in governance. It is equally important to consider the significance of financial and monetary policy.