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Economics

Evolution of Capitalism

According to Kaletsky (2011), the main purpose of Capitalism is to develop an economic model that will be better-off than the last one due to new technology, globalization and social changes opportunities. An important task will be to understand “that governments and markets can both be wrong and that sometimes their errors can be near-fatal” as well as that the world we are living in “is too unpredictable and complex to be managed by any immutable institutional structure”. That fact implies that business and politics can collaborate and “it creates scope for leadership, creativity and experimentation” in both areas (Kaletsky, 2011). “If markets and political institutions are both recognized as fallible, the rational response must be willingness to experiment and a preference for reversible policies and business decisions, initially conducted at a modest scale and in a decentralized way.”