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Preferred term

economic policy formulation  

Definition

  • In the Western democracies, following World War II (1939–1945), there emerged rather rapidly a consensus among most governments that the general reliance on market forces, which historically had dominated processes of economic policy formulation, would need to be replaced by approaches to economic governance that would incorporate much more active and systematic state economic intervention. This shift in policy orientation was for the most part driven by the desire to avoid a return to the kinds of economic conditions that prevailed during the Great Depression of the 1930s—conditions that for many could be attributed in large part to prevailing laissez-faire policy orientations. [Source: The Encyclopedia of Political Science; Economic Policy Formulation]

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https://concepts.sagepub.com/social-science/concept/economic_policy_formulation

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