A rare and fragile victory for expertise

It’s hard to read this Wall Street Journal article by Justin Lahart without concluding that the emerging consensus among economists about how to respond to the financial meltdown — direct injections of capital into banks rather than creating a reverse auction for toxic debt — has had real-world effects on the way governments in general ...

By , a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast.

It's hard to read this Wall Street Journal article by Justin Lahart without concluding that the emerging consensus among economists about how to respond to the financial meltdown -- direct injections of capital into banks rather than creating a reverse auction for toxic debt -- has had real-world effects on the way governments in general (and the United States in particular) have responded.  Furthermore, it appears that global markets have responded positively to this change in tack (though that could easily change and the TED spread is still waaaaaaaaaaaaaaay too big). Question to readers:  does this mean that the country is ready to throw its lot in with the economists?     

It’s hard to read this Wall Street Journal article by Justin Lahart without concluding that the emerging consensus among economists about how to respond to the financial meltdown — direct injections of capital into banks rather than creating a reverse auction for toxic debt — has had real-world effects on the way governments in general (and the United States in particular) have responded.  Furthermore, it appears that global markets have responded positively to this change in tack (though that could easily change and the TED spread is still waaaaaaaaaaaaaaay too big). Question to readers:  does this mean that the country is ready to throw its lot in with the economists?     

Daniel W. Drezner is a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast. Twitter: @dandrezner

More from Foreign Policy

Newspapers in Tehran feature on their front page news about the China-brokered deal between Iran and Saudi Arabia to restore ties, signed in Beijing the previous day, on March, 11 2023.
Newspapers in Tehran feature on their front page news about the China-brokered deal between Iran and Saudi Arabia to restore ties, signed in Beijing the previous day, on March, 11 2023.

Saudi-Iranian Détente Is a Wake-Up Call for America

The peace plan is a big deal—and it’s no accident that China brokered it.

Austin and Gallant stand at podiums side by side next to each others' national flags.
Austin and Gallant stand at podiums side by side next to each others' national flags.

The U.S.-Israel Relationship No Longer Makes Sense

If Israel and its supporters want the country to continue receiving U.S. largesse, they will need to come up with a new narrative.

Russian President Vladimir Putin lays flowers at the Moscow Kremlin Wall in the Alexander Garden during an event marking Defender of the Fatherland Day in Moscow.
Russian President Vladimir Putin lays flowers at the Moscow Kremlin Wall in the Alexander Garden during an event marking Defender of the Fatherland Day in Moscow.

Putin Is Trapped in the Sunk-Cost Fallacy of War

Moscow is grasping for meaning in a meaningless invasion.

An Iranian man holds a newspaper reporting the China-brokered deal between Iran and Saudi Arabia to restore ties, in Tehran on March 11.
An Iranian man holds a newspaper reporting the China-brokered deal between Iran and Saudi Arabia to restore ties, in Tehran on March 11.

How China’s Saudi-Iran Deal Can Serve U.S. Interests

And why there’s less to Beijing’s diplomatic breakthrough than meets the eye.