Daily Archives: August 19, 2008

As my colleague, Clive Crook, has already noted in his blog on several occasions, the journalist, Michael Kinsley, has started a conversation on “creative capitalism”, the controversial idea advanced by Bill Gates at the annual meeting of the World Economic Forum last January. Michael was kind enough to invite me to contribute. In the end, most of what I wrote was about capitalism itself, rather than creative capitalism (whatever that may be).

My starting point was that one would not get very far in understanding how capitalism might be changed if one did not first understand what it was. In the end, I posted four pieces, which I hope will also be of some interest to readers of this forum. They are entitled “what makes profit-maximisation possible”, “what Bill Gates really means by creative capitalism”, “profit-maximisation as the sole goal of a corporation” and “corporate social confusion”. They can be found here.

By Barry Eichengreen  

One of the chief ways financial market participants make sense of events is by drawing parallels with the past. The subprime crisis, when it first erupted, was widely perceived as the most dangerous financial crisis since the 1930s. The implication was that it was critical to avoid the policy mistakes that transformed that earlier crisis into a macro­economic disaster. The lesson drawn was that it was important to avoid an excessively tight monetary policy. Read more