Tuesday, April 28, 2009

"Every talented player understands the importance of a strong referee"

That's the subtitle of George Akerlof and Robert Shiller's WSJ column, Good Government and Animal Spirits:

... [Government's] role is not to harness animal spirits but really to set them free, to allow them to be maximally creative. A brilliant player wants a referee, for only when the game has appropriate rules can he really show his talents. While the sports of baseball and football haven't changed much in the last century, the economy has -- and American financial regulation hasn't had an overhaul in 70 years. The challenge for the Obama administration, along with the U.S. Congress and our SROs, is to invent a new and better American version of the capitalist game.