I have been observing in India and abroad how the present stand of liberalism moves forward. I find increasingly diluted even among the well experienced liberals. For instance, in today’s Business Standard Professor Deepal Lal argues “….US banks urgently need to be restored to health, perhaps through temporary nationalisation as in Sweden in 1992”. This is a dangerous suggestion. I have no idea how he reached this conclusion. Though, he gives some explanation in the article essentially the major difference between Hayek, Keynes and Fisher and Wicksell theory.
But I remember what Anna Schwartz said "we won't have a capitalist system . . . People are responsible for the decisions they make. If they've made wrong decisions, lost money and don't have the funds to operate, well, it's time to leave the market. And that's what the Fed's responsibility is, not to shore up firms that have no reason to continue."
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