Recent Publications
Taiwan Economic Research Monthly
Should the government policy go to extremes or the middle way?
There are usually three ways for individuals to do things and for the government to design and implement policies. One is not to do it, one is to go all out, and the other is to work hard to a certain extent. The third is considered as the golden approach advocated by the ancients. In fact, these three methods may be applicable to different situations, and it is not necessarily the best way. This choice of best practice exists in a variety of issues, but economics often claims to be the science of optimal choice or solution, and economic policy is almost daily confronted with debates about the strength of policy, such as how much to boost economic sentiment or drive down prices and so on and so forth. Therefore, economic researchers should pay more attention to the question of whether the policy should go to extremes or the middle way. However, in the research of economic theory, the possibility of extreme approaches is often assumed away, and some policy discussants often make the assumption that there will only be extreme practices. This article will analyze the possible factors that lead to extreme practices or the golden mean, so that everyone can think about whether it is related to their own assumptions when putting forward extreme or moderate claims.