Recovery is not reform. The government’s intended path to recovery is a mixture of borrowing, pay cuts, and spending cuts. All recovery plans treat the symptoms of a downturn. Global aggregate demand has been buoyed by injections of capital by governments. There is evidence the medicine is working. Global recovery looks in sight. Reform however, is a deeper, and more important, matter.
What kind of permanent changes to the international financial system do we want to see to reduce the likelihood of prolonged downturns in the future?
You can read the rest of Stephen Kinsella's piece in today's Sunday Independent here.