There is a bit of a problem with the match between derivative securities markets and the primary markets. We have long ago instituted principles, essentially high margin requirements, to prevent certain instabilities in the stock market, and I think they're basically correct. The trouble is that there's a linkage, let's say, between something like the stock market and the index futures markets, and the fact that the margin requirements are very different, for example, played some role in the October '87 crash.

The switch to the market in Eastern Europe, of course, has not exactly been one of the greatest advertisements for the market. There's no question the socialist system - and I hate to use the word 'socialist,' but I suppose some description of a system in which the state is in control - was breaking down, really collapsing. In these countries, most markedly in Russia itself and in a number of the others, it obviously was based on a tyranny, which is unacceptable even if it were producing good economic results, which it was not.

Unsolved problems, that's one of the great signs of progress in my opinion.

My undergraduate education, at the City College in New York, was made possible only by the existence of that excellent free institution and the financial sacrifices of my parents.

In The United States, the only real change I know has been Instant Runoff, which is usually applied to municipal elections. I see no real improvement. There's another aspect which comes out of the two-party system, which the primary, a funny kind of two-stage election. And people certainly have complained.

Classic economic theories recognize public goods aspects of one kind or another - the need for economic intervention in, obviously, the supply of infrastructure and of education. We're not supplying that infrastructure at an appropriate rate today. I don't doubt it isn't just money; it's organization and goals and so forth.

Venture capital has done much more, I think, to improve efficiency than anything.