International economic order depends on credible rules that discipline and limit government power while allowing the freedom to engage in mutually beneficial trades. In creating a harmonious global order, therefore, governments must first get their own houses in order.
In doing so, the first principle should be “Do no harm.” This means policymakers should take account of the long-run consequences of their actions, rather than wedding themselves to the short run. They should also recognize that there is no perfect system. Every policy choice has costs and benefits; trade-offs are a fact of life. A principled approach to policy, however, will have positive spillovers as other countries follow suit.



When thinking about international balances and monetary stability, it is essential to recognize the fundamental problem of determining the proper balance between state and market — that is, between the use of force and freedom. If the force of law/ government is limited to the protection of persons and property, markets, i.e., voluntary exchange, can operate to create social and economic harmony.