In a Financial Times poll of economists published on January 1, I was one of just two who was relatively optimistic about the likely course of the recession. Although it is of course far too early to be sure, it now seems just possible that the prophets of economic doom were indeed mistaken, and that, just as in the previous recessions of the early 1980s and 1990s, recovery will be swift and relatively long-lasting.

However, one consequence of recent events that will take a long time to dissipate, if indeed it ever does, is a revival of belief in the role and importance of the state. Few would now deny that individuals operating in unregulated financial markets do make mistakes, and systematic ones at that. Moreover, most would agree that shrewd interventions by the state in this area can save individuals from the worst consequences of their own poor decisions, and can thereby make things better both for themselves and for others affected.