Friday, 24 September 2021

"There are no economic miracles...."

"There are no economic miracles. Rather there are countries held far below their potential due to bad government policies. South Korea in the early 1960s was one example, while China under Mao was another. In the Korean case, economic success resulted from following the recommendation of US policymakers. In the German case, economic success came after domestic policymakers ignored the advice of US policymakers and freed up domestic prices (in 1948).
    "The common thread is that almost all economic 'miracles' involve some form of economic liberalisation. What looks like a 'miracle' is the rapid growth after the removal of growth constraints."
          ~ Scott Sumner, from 'Doug Irwin on the Korean miracle'

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