During the 2008 Financial Crisis, both monetary policy and fiscal policy had limited
effects in developed countries without structural changes. The rise of China
and emerging economies is mainly driven by technology advancement and structural
reform (Chen 2010). The primary cause of business cycles and changing world
order is technology wavelets. Market psychology and monetary movements only
play secondary role in feedback dynamics. This is our lesson from the Great Recession
in 2008, which is greatly different from the Great Depression in 1930s. The
common limits among Keynes, Hayek, and Friedman were their ignorance of global
competition and shifting power balance under technology revolution.