All advanced-country governments are still officially committed to undergoing the pain of fiscal adjustment. But how many will become exhausted before implementing their reforms in full, and succumb to the belief that there are painless alternatives?
Today, mercantilism is typically dismissed as an archaic and blatantly erroneous set of ideas about economic policy. But it is more accurate to think of mercantilism as a different way to organize the relationship between the state and the economy – a vision that holds no less relevance now than it did in the eighteenth century.
The essence of the crisis is its unpredictability. The “crisis” that is confidently believed to involve no danger of things getting out of hand is no crisis; no matter how energetic the activity, as long as things are believed to be safe there is no crisis.
"On balance, I think macroeconomics has gone backwards since the discovery of the Phillips curve in 1958 . The subsequent 50+ years has been a history of mistakes, overcorrection and partial countercorrections. To be sure, quite a lot has been learned, but as far as policy is concerned, even more has been forgotten."
The emerging economic and political order will depend heavily of our ability torepair the broken links between capitalism and democracy and to help the developingworld in its quest for justice and freedom