This text provides an examination of the future of economic policy in the next millennium, assessing the reasons for the shift to a more sceptical view of the role of government, given the power of the financial markets and the impact of globalization.

This text provides an examination of the future of economic policy in the next millennium, assessing the reasons for the shift to a more sceptical view of the role of government, given the power of the financial markets and the impact of globalization. These contributions from within the political economy tradition emphasize the lessons from the past about the varieties of forms of capitalism, the importance of public institutions and public policy, and the limitations of the rival laissez-faire approach. The dangers of an unregulated and powerful financial sector for the real side of the economy are a particular focus of attention. Proposals to rectify the shortcomings of financial markets and shift the focus of policy to a greater concern for the poor and excluded are put forward. The message to the economic policy-makers of the future is that markets perform valuable economics and social functions, but perform these better when appropriately regulated and controlled.

Notes on the Contributors - Introduction - Philip Arestis &
Malcolm Sawyer - Industrial Policies versus Competitiveness Strategies: in Pursuit of Prosperity in the Global Economy - George De Martino - Competitive Markets and Economic Development: a Commentary on World Bank Analyses - Ajit Singh - The Political Economy of the Current US Financial Crisis Function - L.Randy Wray - Financial Structures and Egalitarian Economic Policy - Robert Pollin - Financial Markets, the State and Economic Development: Controversies within Theory and Policy - Ilene Grabel - The Tobin Financial Transactions Tax: its Potential and Feasibility - Philip Arestis &
Malcolm Sawyer - Index