tag:blogger.com,1999:blog-6245381193993153721.post5679693784181086183..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Leijonhufvud on Broken Financial Systems and Excessive Private DebtLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6245381193993153721.post-87624164098161175862011-05-19T23:15:12.682-07:002011-05-19T23:15:12.682-07:00Would you say that Sweden style reforms should hav...Would you say that Sweden style reforms should have been implemented in US in 2007?<br /><br />I ask, because Messrs. Krugman and deLong had proposed doing what Sweden had done in the 1990s. However, they seemed to shift towards support for the bailout that happened, once it seemed that their preferred option was politically unfeasible.<br /><br />This, despite them knowing that there would be moral hazard issues with a bailout, and that it would essentially subsidise banks for bad business practices - a tendency confirmed by some of the dishonest dealings in the foreclosure business.<br /><br />That's what confuses me about today's economists. Their job is to be people of ideas, but they reduce their prescriptions to what is politically feasible, as if they were advisors. Is it not a fact that if no good solution is politically feasible, then it means that no good solution can be implemented?Prateek Sanjaynoreply@blogger.com