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Conventional policies have failed in reducing addiction and production.
In the first major episode of his administration, the stimulus package, the conventional policies so far have won.
But one of Schumpeter's fundamental insights has held up well: conventional policies focusing on short-run efficiency may not be desirable, once one takes a long-run innovation/learning perspective.
So an important question for the Obama presidency is this: Will his transformational style eventually lead to transformational policies, or will his conventional policies eventually force him to shelve his transformational style?
And it's certainly true that for the past few years the Fed has tried hard to push down interest rates, both through conventional policies and through unconventional measures like buying long-term bonds.
Compared to conventional policies, administration of the program is a much more critical issue.
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That estimate does not include the cost of inland flooding, a type of damage not covered by conventional insurance policies.
Conventional policy wisdom would need to adjust.
But in China, conventional policy still has plenty of space.
Central banks have pulled all the conventional policy levers and a few unconventional ones as well.
In essence, if not degree, it is not so different from conventional policy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com