The Us-Inflation Reduction Act: Global Assessments of Economic Experts

Tasks

Building on a previous study on the impact of the Inflation Reduction Act (IRA) on the German economy, the study examines the expected effects of the investment program on the United States and its trading partners. This is done through a worldwide survey of economic experts conducted as part of the Economic Experts Survey (EES). Participants are asked about the importance of the IRA in the public debate and the expected effects on the domestic economy. In addition, questions on the potential exodus of firms and a possible counter-reaction by policymakers are analyzed.

Methods

Global Survey of experts.

Data and other sources

Economic Experts Survey, CBO 

Results

According to the experts surveyed, the IRA does not receive much attention from a global perspective. Only in European countries, especially in Western Europe, the topic plays an important role. This is also where concerns about negative effects on the domestic economy as a result of the IRA are greatest. In Germany and France in particular, there are fears of an exodus of companies. 

A considerable number of experts support a counter-reaction by policymakers. The two most frequently cited recommendations for action are improvements in investment conditions and an adjustment of subsidies or the pursuit of an active industrial policy.