Conclusion

Abstract

For roughly the past quarter of a century the majority of the world economy has operated under a policy consensus that has been advocated by politicians (of left and right), supra-national authorities, economic commentators and academic economists alike. Workers should be ‘flexible’ so that they tolerate relatively low wages, spells of unemployment and general uncertainty. Governments should be fiscally responsible and restrict their borrowing. Above all, the setting of monetary policy should be independent from government and aimed at low inflation (though policy aimed at this goal has operated by variously targeting the money supply, exchange rates and consumer price inflation). From a global perspective, finance capital or wealth should be ‘free’ so that it can be invested in whatever country its owners choose; and exchange rates should be set by markets, not managed by financial authorities.