Our understanding of the macroeconomic policy debates and institutions designed to achieve desirable economic, political, or social goals has changed a great deal over time, oscillating between state interventions and a free-market approach. This book focuses on the tension between these two positions, a tension that is driven by conflicts between the desired goals of economic policy and what is feasible.

The book gives a novel and rather unconventional account of this evolution and where it is leading. It presents the policies and underlying theories in an informal way, so that the reader can easily grasp the main story line, the implications, and reasoning behind the different policy designs.

Apart from Chapter 1, which is introductory, the book is organized in two parts. The first focuses on the developments of economic theories and policies and includes Chapters 2–6. The second part – Chapters 7–13 – concentrates on the design of domestic and international institutions and economic governance. A final chapter concludes and traces some possible scenarios on the future evolution of economic policies.