The world has also learned some valuable lessons
that we should already have learned
- The first lesson is that markets are not self-correcting. Indeed, without adequate regulation
- The second important lesson involves understanding why markets often do not work the way they are meant to
- The third lesson is that Keynesian policies do work
- The fourth lesson is that there is more to monetary policy than just fighting inflation
- The fifth lesson is that not all innovation leads to a more efficient and productive economy
Regrettably, unless the United States and other advanced industrial countries make much greater progress on financial-sector reforms in 2010 we may find ourselves faced with another opportunity to learn them.