International Policy Analysis Populism and the Economy: An Ambivalent Relationship CRISTÓBAL ROVIRA KALTWASSER March 2019 n Many economists define populism as an irresponsible economic approach. However, populism should be conceived of as a set of ideas that not only portrays society as divided between“the corrupt elite” and“the pure people,” but also defends popular sovereignty at any cost. n There are populist forces of different political colors, which usually foster a process of “creative destruction” that can lead to both positive and negative economic outcomes. n Given that populist forces often raise legitimate questions about the state of economic affairs, academics and policy-makers should listen to their opinions in order to develop suitable answers to these questions.