If government policies are corrected, and private practices are made more prescriptive, they argue, the ship of state can ensure that the real economy avoids rough seas altogether.
The political economy confirms the policy response: Policymakers may pay greater attention to insuring against rare bad events – to which they could be held to account – than to allowing scores of great things to flourish. 8  Kevin Warsh (2007), "Market Liquidity: Definitions and Implications," speech delivered at the Institute of International Bankers Annual Washington Conference, Washington, March 5.