Money, Fiscal Discipline, and Growth

History will regard the last quarter of the twentieth century as a time when the world reawakened to one of Adam Smith’s most important observations— that the specialization and trade fostered by market economies are ultimately the source of the wealth of nations. At no time in history have markets spread so rapidly, and with such promising prospects, as in the last 15 years. Europe’s move to a single market for capital, goods, and labor is part of a worldwide trend toward greater reliance on unfettered markets for the allocation of productive resources.