Steven Baker is the MP for Wycombe in the U.K. and he writes,
I had the great pleasure last night of speaking to the Economic Research Council on the subject of Political Economy and the Crisis. I argued that:I wonder how many MPs in N.Z. have ever said such things!
Economics should become political economy, embracing the problem of knowledge in the social sciences, morality (think Adam Smith’s Theory of Moral Sentiments) and public choice theory, in particular.
- Classical liberalism is the most robust political economy.
- The Austrian School offers important insights, particularly into business cycles and capital theory.
- The Austrian School predicted and intellectually survived the crisis.
- That reality is, or should be, a challenge to the contemporary paradigm.
- The implications for financial reform are profound.