Zhang

At the end of the 18th century, Adam Smith coined the concept of “invisible hands,” and it played a irreplaceable role in creating market-based economy. However, market itself has inherent flaws, and will led a disaster, and today’s world financial crisis has been spreading much out of the hands of the market. Thus, we might think some rescues, one of which is “palpable feet”.

In the 21st century, we need to consider a creatively old concept of palpable feet — a government’s role in the market. Invisible hands are hard to control because of collective individual dynamics, whereas the palpable feet are easier to see and oversee because of the efficient and hierarchical functions. Invisible hands are hard to see, but the palpable feet can examine by bootprints.

Philosophically and empirically, invisible hands should collaborate with paplpable feet in dealing with financial crisis.

… to be continued.