Matt Yglesias thinks The Globalization Paradox is “a pretty good book lurking behind a terrible framing device.” Hmmm. I guess that’s better than the other way around. Good to see that some of his readers find the device pretty useful in thinking about what Greece, for instance, is going through at the moment.
Meanwhile Steven Pearlstein of the Washington Post provides me with the biggest compliment an economist could possibly want to hear:
In his famous treatise "The Wealth of Nations," Adam Smith acknowledged that "the division of labor is limited by the extent of the market." By extending the market as far as it can go, globalization offered the prospect of finally removing all limits to specialization by workers and businesses everywhere in what they do best.
Now comes Rodrik with a much-needed addendum to Smith's famous formulation, one that the Scottish philosopher himself would have admired: The extent of the market is limited by the workable scope of its regulation.
I will gladly settle for being a footnote (let alone an addendum) to The Wealth of Nations.
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