Too many politicians seem to reach for 'infrastructure' as the default answer to investment, as if roads and bridges were the answer to everything. Even the IMF and the World Bank seem to mainly offer infrastructure spending as an alternative to austerity, although they are right to focus on the need for investment.

The actual division of labor must be reflected in the division of the rewards (and prices, which is the way the consumer gets rewarded).

Rethinking capitalism means rethinking the role of the public sector, the role of the private sector, the role of finance, and the relationship between them all.

We should be investing where the public returns are greatest - that is in innovation.

What is needed is both a New Deal in terms of mission-oriented investments but also a new deal in terms of a modern social compact - one that allows the state to socialize not only risks but also rewards. Maybe then innovation-led growth will also become growth that includes all of us.

An interesting attribute of public banks is that they don't only de-risk the downside, but also get a share of the upside.

Brexit and Trump's election are forcing countries to come up with new radical ideas.