How the digital economy is changing public policy

Paris, 05/09/2017

 

By 

Maxime Alimi, 

Head of Investment Strategy - AXA IM R&IS

Tomorrow Augmented: the digital economy’s next stage of evolution

Technology is changing just about every aspect of how we live and work. From healthcare to taxis, to entertainment and financial services - its influence on society is immense. The rise of the digital economy is core to this megatrend.

Over the next several weeks, we will take an in-depth look at this phenomenon and outline how we expect it to grow over the years to come.

Our sixth piece examines how the digital economy is changing public policy.

Key points

  • Monetary policy is being challenged by the changing inflation landscape in the digital economy as well as by the emergence of alternative currencies that threaten central banks’ monopoly on money.
  • Digital business models call for a rethink of the policies ruling corporate life. Governments need new frameworks for taxation and competition.
  • Government 2.0 is attempting to emulate the digital economy in its methods – by the use of data and the ability to improve users’ experience.
  • The digital economy is also changing public policy objectives. Managing the fallout of automation on employment looks like a particularly daunting task.