Note to p. 56: "Paul Krugman mused... that even if neoliberalism was false in theory it could still be made true or true enough in practice..."

Stephen S. Cohen and J. Bradford DeLong (2010), The End of Influence: What Happens When Other Countries Have the Money (New York: Basic Books: 9780465018765).

When you have the money--and "you" are a big, economically and culturally vital nation--you get more than just a higher standard of living for your citizens. You get power and influence, and a much-enhanced ability to act out. When the money drains out, you can maintain the edge in living standards of your citizens for a considerable time (as long as others are willing to hold your growing debts and pile interest payments on top). But you lose power, especially the power to ignore others, quite quickly--though, hopefully, in quiet, nonconfrontational ways. An you lose influence--the ability to have your wishes, ideas, and folkways willingly accepted, eagerly copied, and absorbed into daily life by others. As with good parenting, you hope that by the time this happens those ideas and ways have been so thoroughly integrated that they have become part of what is normal and regular abroad as well as at home; sometimes, of course, they don't. In either case, the end is inevitable: you must become, recognize that you have become, and act like a normal country. For America, this will be a shock: American has not been a normal country for a long, long time.

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Monday, October 26, 2009

Note to p. 56: "Paul Krugman mused... that even if neoliberalism was false in theory it could still be made true or true enough in practice..."

Paul Krugman:

[While] economists have argued with each other over whether [central bank] monetary policy can [from a theoretical perspective]… be used to get an economy out of a recession, central banks have repeatedly gone ahead and used it to do just that—so effectively in fact that the idea of a prolonged economic slump… became implausible…

Posted at 12:22 PM in Notes | Permalink

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Reference is missing...

Posted by: Milan Stanek | Thursday, February 18, 2010 at 05:14 AM

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Notes, etc., to "The End of Influence"

Monday, October 26, 2009

Note to p. 56: "Paul Krugman mused... that even if neoliberalism was false in theory it could still be made true or true enough in practice..."

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