ft.com > comment >
Remember me on this computer Sign in
June 28, 2011 7:55 pm
Enjoy the coming slump. That is not what the Bank for International Settlements says to the US and other overindebted economies. But it is what its latest annual report implies. I admired the warnings of monetary and financial excesses that the BIS gave under its former economic adviser, William White. I respect Stephen Cecchetti, his successor. But I disagree with the thrust of this report. It understates the obstacles to across-the-board austerity.
Persisting with monetary and fiscal accommodation is uncomfortable. But unconventional times demand unconventional policies. What makes these times unconventional? The answer is that a number of economies are in what the Jerome Levy Forecasting Center calls a "contained depression" "“ a period of sustained private sector deleveraging.
You have viewed your allowance of free articles. If you wish to view more, click the button below.
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
© The Financial Times Ltd 2011 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Printed from: http://www.ft.com/cms/s/28e2d3e2-a1b5-11e0-b9f9-00144feabdc0,Authorised=false.html
Print a single copy of this article for personal use. Contact us if you wish to print more to distribute to others.
© The Financial Times Ltd 2011 FT and ‘Financial Times’ are trademarks of The Financial Times Ltd. Privacy policy | Terms | Copyright
Read Full Article »