Losing Sight of the Long-Term
Posted at 2:30 p.m. on Feb. 27
Stephen Roach: “As the quintessential laissez-faire system, the US has outsourced strategy to the invisible hand of the market for far too long. That has left the government locked into a reactive and often misguided approach to unexpected problems. Thus, the Fed is focused on cleaning up after a crisis rather than on how to avoid another one. The same is true of US fiscal policy, with an event-driven debate that now has ever-shorter time horizons.”
