Tuesday, February 17, 2009

Martin Wolf On What Needs To Be Done

Martin Wolf of the FT discusses in the video clip below what he believes must be done for the economy to recover. I like his discussion because it provides a succinct to-do list for policymakers:

(1) Keep financial markets working.
(2) Stabilize domestic demand.
(3) Deal with the insolvent banks and households.

I think these are spot-on prescriptions for economic recovery. Observers may argue about the specifics of these points, but in my view they address the key problems. Yes, there is nothing new here and some of the points are already being addressed, but I have not seen anyone pull these issues together so nicely in one discussion. Click on the picture for the video clip.

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