VoxTalks Economics S8 Ep64: A London economic consensus?
Dec 12, 2025
Tim Besley, a renowned economist from the London School of Economics, and Andrés Velasco, a former policymaker, dive deep into the challenges facing today's economic landscape. They discuss their ambitious work, The London Consensus, which aims to provide adaptable policy principles rather than one-size-fits-all solutions. The duo highlights the need for well-being beyond GDP, the importance of growth, and the crucial role of state capacity in effective governance. They also caution against simplistic economic paradigms while emphasizing coherent narratives for better policymaking.
AI Snips
Chapters
Books
Transcript
Episode notes
Principles Over Recipe Books
- The London Consensus offers guiding economic principles, not a one-size-fits-all recipe book.
- Andrés Velasco and Sir Tim Besley stress tailoring policy to local political economy and legitimacy.
Taxi Ride Sparked The Project
- The book started from a taxi ride conversation between Andrés Velasco and Sir Tim Besley after dinner at LSE.
- They asked LSE researchers what we've learned since the Washington Consensus and translated it for policymakers.
What Washington Consensus Missed
- The Washington Consensus focused narrowly on macro stability and price liberalization and missed later priorities.
- Modern concerns include innovation, climate, inequality, inclusion, and political economy dynamics.
