ABSTRACT
This chapter examines the policy formulation debate for a responsible economy. A complicated tax system that encourages the hunt for loopholes is not desirable. But neither should the government be afraid to levy simple taxes in the fear that firms and individuals will move abroad. The government cannot and should not try to micromanage the economy. It should however adopt simple clear measures to address things that are clearly bad. Payday loans at high interest rates are bad there should be usury laws that limit the interest rate paid. There is no need of complicated trading markets to address climate change. Instead, one can locate the greatest sources and take strong action. If a country refuses to join in a global effort, it should be ban from our markets. The markets can signal their dislike of a policy, but unless if it is truly unsustainable they cannot veto it, unless if the government chooses to give them that power.
