KZ:  Farmer argues fixing and preventing financial crises requires economists attune themselves to present-day conditions. Specifically, he asserts that governments need to intervene in asset markets in a manner similar to recent actions of central banks, and principal actors in the international economy need to pursue financial stability. To achieve this stability Farmer proposes that sovereign nations create sovereign wealth funds backed by the present value of future tax revenues. These funds would function like exchange-traded funds currently operate, and in time, would become the backbone for stabilizing financial markets.

Admiral objective. Two questions. First, what’s to stop the financial gamblers who take the wins and leave we lowly taxpayers to take the losses from plying their trade with these new sovereign wealth funds? And leaving us holding the bag once again? Second, why should the ordinary citizens care about any of the pros or cons of Farmer’s proposals or the opponents he proposes to banish? Will it help them pay their mortgages/rent or feed their kids or find a job? If yes, please show me how that happens.

Me:  Perhaps if we integrated directness, encompassment and reciprocity into monetary and economic policy we could transcend Keynesianism.