Mar 8, 2009

Rethinking Capitalism???

G'day all,

so I just read this super interesting article from Amartya Sen concerning the future of capitalism beyond the financial crisis, in the New York Review of Books.

Sen's take is essentially that calls for a 'new breed of capitalism' as a result of the crisis are misplaced. He does however advocate that in order to present solutions to problems at hand, we need to have another look at some older economic ideas - not only the work of Keynes which is in vogue now, but also those of Pigou (concerning psychology and economic activity), and of course the doyen of economists, Adam Smith himself (who was perhaps the first to highlight the pivotal role of trust in economic transactions).

A must read for those interested in the bigger picture to emerge from the current crisis!!


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