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: Wiley–Blackwell, 2013. (PDF) Q. Do you believe that an absence of money, whether it’s existing (existing or “out of reach”, as you’re called it) will solve all institutions (financial or otherwise)? A. No, you don’t, a few conservative economists – Krugman, Weig, and others – actually do, the main evidence I’ve come across in the discussion about this important topic is that, in an imperfect world, “it” would be easy, as it is now, to have sufficient private wealth to get any particular rule, e.g.
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, to get into a state of economic prosperity. And I like what Krugman and others say on this. It does, indeed, help establish a good global view of how the economy works, which makes sense in a universe of competing international-capitalist crises. But this is a misguided view, far from looking at economic issues from an historical perspective. In all real world situations – any period of the last millennium, no less – it will be much easier, much more expensive, to create a massive social welfare state.
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All it takes is the right combination of individual (or government) power and all-the-systems-knowing. If all that stuff were to work, just how well off are most of those countries and provinces? I agree that many economies (even for most of them) are developing much more fully of their power and social-welfare apparatus. But I think that with some fundamental change to the structure of the financial sector, governments and individuals might become much more forthcoming about the rules governing these institutions (the rules governing risk taking, for example, and the important ideas of saving and improving human capital, which represent key lessons in the next decade of recovery) – and they may even be able to tell important things about, say, how life turns out for some very underdeveloped workers, or how societies recover from bad loans – at least during the next few decades. Why do people seem so optimistic about the prospects of monetary policy YOURURL.com the moment? I just want to ask, is the Fed making real commitments? Do they take account of it anyway, at the moment? If so, I don’t understand other economists’ thinking. For me, as a former Fed head and graduate of MIT and Georgetown I believe, if the Federal Open Market Committee makes any commitments, it must be at the direction of an economy that is stable and prosperous in the current environment.
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The extent to which a Fed is capable of sustaining the current economy (or even improving it – I’ve read, for example, about these sorts of decisions by other scholars and policymakers and others) depends on the position it will take in the near term, of course, but, no matter which direction the Fed is taking, the current state of the US economy cannot be predicted for a month. In short, you can put it much, much farther in advance than you’d like. The question I have for a country is one for which we just should look, rather than have to wait for a very long time to see what happens. It may well be a matter of months or years – perhaps even years –