It’s mostly likely selective rather than total blindness to the risks inherent within the policy choices. The path of economic austerity, while waived as a solution to the problem, also carries consequences (risks). History clearly suggests that official choices almost always follow the path of least resistance. This path rarely includes long-term solutions or fixes until the flow of capital forces the issue.
The risks stemming from the Federal Reserve’s efforts to stimulate the economy through bond purchases are “humongous” and the central bank doesn’t fully understand the potential effects, said Nassim Taleb, author of “The Black Swan.”
Source:
bloomberg.com
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