Economist of the day

Posted: 31 March 2011 in Uncategorized
Tags: , ,

The problem is that regulators, and for that matter everyone else, can never get more than a glimpse at the internal workings of the simplest of modern financial systems. Today’s competitive markets, whether we seek to recognise it or not, are driven by an international version of Adam Smith’s “invisible hand” that is unredeemably opaque. With notably rare exceptions (2008, for example), the global “invisible hand” has created relatively stable exchange rates, interest rates, prices, and wage rates.

Alan Greenspan, “Dodd-Frank fails to meet test of our times”

See, in addition, the responses by Yves Smith, Michael Hudson, and Peter Radford.

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