In 2010, the British science writer Matt Ridley debuted as a classical liberal with his book The Rational Optimist. Ridley’s “coming out” was eventful and exciting for libertarians all over the world. A former staff writer and head of the Washington bureau of The Economist, a successful science author and, more importantly, a gifted narrator, Ridley condensed in his thick book much research and wisdom. The financial crisis appeared to many to have dispensed with free market ideas once and for all. Ridley pointed out that, to the contrary, free markets were actually producing prosperity, food, cleanliness all over the world—particularly for the world’s poor.
What an absolutely astounding admission former Fed boss Alan Greenspan makes about his new book The Map and The Territory: “Not a single major forecaster of note or institution caught it [the 2008 crash]. The Federal Reserve has got the most elaborate econometric model, which incorporates all the newfangled models of how the world works—and it missed it completely. I was actually flabbergasted. It upended my view of how the world worked.”