“Structural reform” is vital to restore growth now, not a vague idea for many years in the future when the stimulus has worked its magic. It’s also a lot harder politically than the breezy language suggests. “Reform” isn’t just “policy” handed down by technocrats like rules on the provenance of prosciutto; it involves taking away subsidies and interventions that entrenched interests have grown to love, and have supported politicians to protect. They will fight it tooth and nail.
Friday, March 23, 2012
Structural reform, not austerity or stimulus
A bit of sensible policy advice from John Cochrane: Austerity or Stimulus? What We Need Is Growth
