Q: A new economic strategy has been called for in the wake of the pandemic, according to a number of sources. President Biden of the US has asked the nation to revamp its economic structure so that we can "build back better." Another international leader urges us to "rethink our way of life and our economic and social systems" rather than "follow the easy path of returning to a 'normality' " The ideas that it is feasible to steer and manage economic operations in accordance with some new design and that government officials can and will do so efficiently are present in both.

1. What would Friedrich Hayek say regarding these calls to rethink and redo the economic system? Use his article'The Use of Knowledge in Society" and his bookThe Road to Serfdom inframing your answer.
2. Suppose you had to do an economic forecast of a country that was planning to adopt such an approach. Would whether it did so or not affect your forecasts of inflation and real growth? If so, why?