3. Limits of economic knowledge “But today we have involved ourselves in a colossal muddle, having blundered in the control of a delicate machine, the working of which we do not understand. The result is that our possibilities of wealth may run to waste for a time – perhaps for a long time.” (Keynes, 1930)
4. Post WWII macro policy approaches 1950s/60s: fiscal activism 1970s: oil crises/monetarism 1980s: fiscal austerity/Washington consensus 1990s: inflation targeting/micro reform 2000s: financial liberalisation/globalisation 2010s: age of austerity/financial repression
14. What don’t we understand? Effects of globalisation Impacts of fiscal policy What really matters for growth How financial markets behave Future of technology Environmental costs/benefits How people behave