Not only economists should be interested in this well-conceived (and well-written) book which grapples with two basic weaknesses of conventional macroeconomic policy, Keynesian or monetarist. Interdependence limits what national governments can do; short time horizons make it hard to deal with long-term problems such as pollution, energy and the reeducation of the labor force. Things are even worse if the author is correct in his argument that world financial integration creates a bias in favor of national policies that leave resources unused. There is no easy escape. Mr. Stewart, of University College, London, is clear about the difficulties in achieving the combination of increased international cooperation and nicely balanced national policies that he believes provides the best chance.
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