"Davos gloom,doom and dread of fresh trade protectionism": Published by Shanghai Daily,February 6,2009 on page A6: I sent my prior blog to the same issue dated January 23,2009.
Central bankers' belief that controlling inflation was necessary and almost sufficient for growth and prosperity had never been based on sound economic theory; now,the crisis provided further skepticism." Milton Friedman of the Monetarist school may be challenged by economist Walter Heller of the school of Fiscalists. I recall the debate between Professor Galbraith and Professor Friedman in "Contemporary Economics" textbook by Milton Spencer of Cornell University who cited "Keys for Economic Understanding" as a reference. I donated such books to Jiaotong University Library in Shanghai years ago.
"While no one from the Bush or Obama administrations attempted to defend American-style free-wheeling capitalism, European leaders argued for their social market economy,their gentler form of capitalism with its social protections, as the model for the future." The model for China's economy maybe a useful reference,indeed.
"Leaders in labor are concerned about the working men and women as the financial community lacks remorse. American financiers were the perpetrators and they were continuing to hold a gun to the heads of governments,demanding massive baitouts and threatening economic collapse otherwise.
US Federal Reserve's reputation was marred by massive monetary policy failures in recent years - to manage the massive buildup of debt and liquidity." Professor Galbraith criticized Alan Greenspan in "Keys to Economic Understanding" www.Amazon.com online book catalog for reference.
"President Obama seems to be offering a needed boost to American leadership after the dark days of George W. Bush." I endorse President Obama's change for betterment in the name of the American people.
Professor Stiglitz is at Columbia University. I remember one of my students at Guangzhou Institute of Foreign Trade was his interpreter in 1992. The student
subsequently joined the Department of Economics at Princeton University.
Francis Shieh a.k.a. Xie Shihao in Shanghai,February 7,2009 at 9.40 a.m.