It is again high season for “global governance”. The global economic crisis has shifted the climate of ideas against free markets in favour of Big Government. The pro-market, pro-globalisation political centre has lurched to the left. The new consensus espouses “Keynes at home and Smith abroad”. Greater government macro and micro interventions at home are needed to stimulate recovery, reduce inequality and preserve social stability. Stronger international co-operation (or global governance) is needed to make this work in tandem with open markets abroad.
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