And it implies that our economies will be best served by policies that promote flexibility – policies that allow economies to respond to price signals and to adapt to changing circumstances. Let me make three points about how policy-makers can encourage flexibility. The first thing to note is the importance of continuing to promote free trade, and resisting the siren song of protectionism.
We must never forget that trade – whether in goods or services – is a positive-sum game. That is to say, in the end, all countries can be winners. But if countries yield to protectionist pressures, everyone in the international community will be worse off in the end.