One Friday afternoon in May 2009, I got an e-mail inviting me to join a small
group of economists and scholars “to exchange ideas and opinions on the
current financial crisis” with China’s Vice Foreign Minister He Yafei. Seven
days later, I found myself in a conference room at the Chinese Consulate on
Twelfth Avenue in Manhattan, seated directly across from a tall, friendly
Chinese diplomat in a well-tailored black suit. Following formal words of
welcome delivered in lightly accented English, the smiling vice minister
began the meeting with a question: “Now that the free market has failed,” he
asked, “what do you think is the proper role for the state in the economy?”
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