Another important note from Bernard Girard, who points us toward the paper that DSK gave at the University of Cambridge, "A Tale of Three Trilemmas." In it, the former IMF head considers the Mundell-Fleming trilemma, the Dani Rodrik trilemma, and the Jean-Pisani Ferry trilemma concerning, respectively, open-economy macroeconomics, the politics of globalization, and the governance of the European monetary system. He draws the consequences of recent crises and says that we have learned that new institutions are required to deal with problems of globalization that cannot be resolved by the market.
This paper makes me regret all the more the political loss due to DSK's disqualification from politics, which cannot be undone. If he had been the left's candidate instead of Hollande, there might have been a genuine debate over the nature of globalization rather than what we have now: avoidance of debate and/or pandering to the extremes by simply denouncing globalization as if it could be reversed or moderated at will. As a politician, DSK had many shortcomings, but his grasp of crucial issues might have elevated the level of discussion, win or lose. Hollande seems to want to occupy the part of the spectrum that DSK once occupied, the center left, without assuming the responsibility of developing a clear center-left alternative to the ill-begotten austerity consensus forged by Merkel and Sarkozy. A pity. Perhaps even a tragedy.