DJ: Turning to the financial crisis, and economics generally, you're a very strong supporter of classical economics and the free market.
What would you change about what is sometimes called the Scandinavian model, the big welfare state and so on? What specifically do you think needs to be done to make Norway prosperous again?
SJ: We had a banking crisis in Norway in the '80s and we had to make severe changes and after that we liberalised the whole market. But we set up a good regulatory framework, and you have to be an anarchist to be against regulatory frameworks, and any good market liberal will agree that regulatory frameworks are very important, to make markets work better.
But what I see now is that socialists and social democrats throughout Europe and even in the United States, are getting some renewed energy defending their ideology, claiming that the reason for this financial scandal has to do with liberalism or market failure or capitalism, which is not true at all. It has to do with mistakes made actually by [former US President] Bill Clinton, and it has to do not with the lack of regulation but with the wrong regulation, with forcing financial institutions to lend money to people without the capacity to pay it back. I think people need to be reminded of that.
DJ: So it's too much state intervention rather than too little.
SJ: Well, that's actually the reason behind the scandal in the United States: too much state intervention and the wrong state intervention. If they had regulated the markets as many of the European countries have done, it wouldn't have happened.
DJ: And do you think, in general, that the future of Europe lies in a more liberal market system? Are you critical of the European Union and the way that it is run?
SJ: Yes, I am. I believe that the EU has done some good things for Europe, even for Norway, which is not a member. I believe in free trade, and free trade is part of the European idea.
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