Angus Deaton\’s got a report out about the difference in American and Brit attitudes to the Stern Review.
Much of it discusses the really important point about Stern, the discount rate used. Only by adopting a near zero discount rate can he show that (large) action now is worthwhile. Deaton says that a low rate can be justified. The American attitude is that if we look at markets then a higher rate should be used. It\’s all rather good as a way of describing the situation.
His final sentence however astonishes me:
Relying on markets to teach us ethics is very much worse.
We\’re supposed to look to politicians instead to teach us ethics?
The man\’s barmy.