The US should face its need for adjustment with courage and reason, not fear. It should stop behaving as the whiner of first resort, ready to waste all its dry powder on a short-sighted attempt to prevent a 2008 recession. Many poorer countries with weaker markets and institutions have survived and benefited from an adjustment that involves a year of negative growth. Faster bank recapitalisation, fiscal investment stimulus and international co-ordination should be first on the policy agenda.Read the whole thing.
Wednesday, January 30, 2008
The Whiner of First Resort
Via Mark Thoma, this piece in the Financial Times by Ricardo Hausmann is quite good. Here's the big finish: