Friday, August 26, 2016

Dysfunctional Blame Games 
Will Delay Real Reforms
"At the end of the monetary magic road (we’re at the dead end), the economy needs structural reforms to grow. These include breaking up of oligopolies and status quo preferences, jamming revolving doors between policy makers, regulators and corporations, closing tax loop holes, flattening the tax code, shifting of corporate incentives to ban share buybacks and boost wage growth, consumer debt write offs and restructuring, incentives to increase savings over borrowing, reduce the size of government, and target key infrastructure projects ..  Structural reforms require political consensus. Indeed, even the much fantasized ‘helicopter money’ requires congressional approval. With political campaigns raging in many countries this year, the likelihood of broad political action on structural reforms remains remote. All of this sets up large opportunity for disappointment to hit delirious asset markets. I suspect, only then, will political action materialize."
- Danielle Park
link here to the reference

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