‘The Federalist Papers are published following the Constitutional Convention. …The papers, particularly those written by [Alexander] Hamilton, recognize that the state creates economic conditions; it does not merely react to them. …Hamilton saw government as an essential, perhaps even primary, economic agent.

It does not merely respond to the private sector but is a primary mover… Hamilton realized that if the new U.S. government united, it could create economic conditions favorable to both internal economic development and its place within the international state system.

Rather than passively receiving terms from the great powers, as is the fate of so many post-colonial economies today, it could enforce its will in the realm of international trade.

Hamilton was also very clear that such an outcome would not develop “naturally” by way of [Adam] Smith’s invisible hand. It had to be planned and actively pursued by the state.’ – An excerpt from the chapter ‘Alexander Hamilton’s state-focused economy’ in 2021 published book ‘Public purpose: industrial policy’s comeback and government’s role in shared prosperity’

The world is facing the existential threat of climate change crisis, and the related ‘Pandemicene’ phenomenon. Fighting this requires building up resilience not only with regard to environment but also associated aspects of economy – and within it such sectors as education, health, and water – epidemiology, and elections; all of which are important in reaching appropriate level of adaptation, and in the first place avoiding global warming from crossing critical threshold of 1.5C.

Focus here demands economic institutional, organizational, and market reforms away from Neoliberalism, and towards a balance between Capitalism and Socialism, which is towards social democracy. It also requires deep level of finances, both to meet resilience needs both through climate finance, and finances for meeting sustainable development goals (SDGs) related targets.

In terms of having ample fiscal space, and a rational level of cost of capital (or policy rate), economic policy needs to move away from over-board........

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