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Hence they fall back on a policy of state non-intervention and deregulation, which is a policy choice and does have consequences as it sets the (dis)incentives within which market actors operate.

On this blog Jerome a Paris and others have written eloquently on the effect that the regulatory environment has on the development of energy and transport infrastructures, and in particular how a deregulated market in which sovereign debt is not allowed to be used for funding infrastructure development is incompatible with the stated policy goals in the area of energy and transport. Specifically, short-term profit pressures and private funding incentivate fuel-burning power plants over renewable energy installations.

So, conscious state non-intervention in the economy is a deletereous policy choice.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Carrie (migeru at eurotrib dot com) on Wed Sep 30th, 2009 at 05:40:14 PM EST
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Neither interest-bearing credit created by credit intermediaries, nor profit to unproductive rentier shareholder owners of trading intermediaries are necessary in a world which is increasingly connected "peer to peer"

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Thu Oct 1st, 2009 at 02:10:15 PM EST
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