Publishing magnate and one-time Republican presidential candidate Malcolm S. "Steve" Forbes stressed the need for continued American leadership in international politics in a speech last night at Boylston Auditorium.

Forbes warned that without active leadership, the country might not take advantage of the favorable economic conditions existing today and might replicate the isolationist tendencies that marked much of the post-World War I era.

Criticizing the "oozing sincerity" of President Clinton, Forbes asked for an unambiguous, coherent foreign policy instead of the "photo-op foreign policy" that he said has characterized much of the Clinton Administration's diplomatic efforts.

"The U.S. must take the lead in the world. If the U.S. doesn't lead, it's not going to happen," Forbes said.

Forbes, the publisher of Forbes Magazine, made an unsuccessful bid earlier this year for the Republican party's presidential nomination.

In his speech, Forbes listed four requirements for the flourishing of liberal democracy: a stable currency, low taxes, protection of physical and intellectual property rights and minimal bureaucratic interference in business creation and operation.

He compared organizations such as the International Monetary Fund (IMF)--which were intended to encourage these conditions--to medieval doctors who drained the blood of their patients in the mistaken belief they were helping them.

The millionaire publisher instead advocated reduced government interference in financial relief efforts. For example, he said the recent catastrophic devaluation of the Mexican peso would not have happened without the interference of the IMF.

The same bureaucratic interference represented by international organizations like the IMF is just as prevalent in the U.S., Forbes said.

For instance, Forbes said he believes the Federal Reserve Board is too eager to raise interest rates to curb inflation, even if the economy is growing at a rate as small as 2.8 percent.

The U.S. should aim for greater growth than this, Forbes said.

"To use a French word, 2.8 percent sucks," he said.

Prosperity does not cause inflation, Forbes said, so the U.S. should not be afraid of a successful economy.

Forbes admitted his comparison of the present situation to that of the 1920s and 1930s is not entirely perfect, but nevertheless maintained the validity of his analogy.

"Obviously, times change, but the principles of progress do not," he said.

The lessons the U.S. learned from its isolationist diplomacy 70 years ago are just as applicable to today's new diplomatic situations, Forbes said.