<story><title>The Covid-19 pandemic is forcing a rethink in macroeconomics</title><url>https://www.economist.com/briefing/2020/07/25/the-covid-19-pandemic-is-forcing-a-rethink-in-macroeconomics</url></story><parent_chain><item><author>caiobegotti</author><text>I believe it&amp;#x27;s not really &amp;quot;rethink&amp;quot; as if we had once figured it out correctly in the past already. We are still actually thinking it for the first time, specially if you consider economists and policy makers were yet looking for &amp;quot;something new&amp;quot; (mentioned in the article) in macroeconomics during the last, what, 50 years? It&amp;#x27;s all pretty new, which suggests to me that it is all in a pretty extremist and radicalized state: it doesn&amp;#x27;t have to be 100% trickle down reaganomics or 100% state interventionism exclusively. I&amp;#x27;m very confident a major crisis like this one will make key people finally realize that a mix of free global markets + welfare states focused on reducing inequality + democratic institutions will be the answer to many macroeconomics problems. Very few countries have realized this, the rest of the world meanwhile will keep shouting at each other doubling down on stupid policies not based in good examples and will keep blaming keynesianism or whatever neoliberal approach they can&amp;#x27;t understand.</text></item></parent_chain><comment><author>ericmcer</author><text>They have already tried your strategy. Economists thought free global markets would lead to liberalization in other governments. That has proved to be utterly untrue with China and as a result they have become the worlds manufacturing hub, while becoming more and more totalitarian.&lt;p&gt;Production wise, an economy that is not concerned with democratic institutions or reducing inequality will outperform one that is. With that in mind, globalization is basically a race to the bottom human rights wise.</text></comment>
<story><title>The Covid-19 pandemic is forcing a rethink in macroeconomics</title><url>https://www.economist.com/briefing/2020/07/25/the-covid-19-pandemic-is-forcing-a-rethink-in-macroeconomics</url></story><parent_chain><item><author>caiobegotti</author><text>I believe it&amp;#x27;s not really &amp;quot;rethink&amp;quot; as if we had once figured it out correctly in the past already. We are still actually thinking it for the first time, specially if you consider economists and policy makers were yet looking for &amp;quot;something new&amp;quot; (mentioned in the article) in macroeconomics during the last, what, 50 years? It&amp;#x27;s all pretty new, which suggests to me that it is all in a pretty extremist and radicalized state: it doesn&amp;#x27;t have to be 100% trickle down reaganomics or 100% state interventionism exclusively. I&amp;#x27;m very confident a major crisis like this one will make key people finally realize that a mix of free global markets + welfare states focused on reducing inequality + democratic institutions will be the answer to many macroeconomics problems. Very few countries have realized this, the rest of the world meanwhile will keep shouting at each other doubling down on stupid policies not based in good examples and will keep blaming keynesianism or whatever neoliberal approach they can&amp;#x27;t understand.</text></item></parent_chain><comment><author>thewarrior</author><text>There are powerful forces whose giant profits would be threatened by such a consensus. It’s hard to say if it will actually happen.</text></comment>