Our experience during the global financial crisis of 2008 was not a substantial deviation from our earlier understanding of the free market. There was a build-up of imbalances in the sub-prime mortgage market. America suffered a setback, sending shockwaves through Europe and Asia, because of the interconnectedness of the global economy. But America has bounced back, and the world economy has recovered along with it. The crisis has exposed underlying problems in Europe, which will take longer to recover. Those problems are related to the continent’s currency union and social spending and have
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