Panic For The Good Of Humanity

By Patrick Appel

That's Fareed Zakaria's advice:

We're living in a dangerous world. But we are also living in a world in which deep, structural forces create stability. We have learned from history and built some reasonably effective mechanisms to handle crises. Does that mean we shouldn't panic? Yes, except that it is the sense of urgency that makes people acteven overreactand ensures that a crisis doesn't mutate into a disaster. Here's the paradox: if policymakers hadn't been scared of another Great Depression, there might well have been one.

Drezner isn't buying it entirely.