Central Banks: Printing Money Delays Domestic Structural Reforms. YaleGlobal. Will Hickey. June 30, 2015.
Countries are waging currency wars in competition over export markets, jobs and foreign investment, printing money, taking on more debt, rather than pursuing serious and needed domestic structural reforms. “Without deeper structural reforms that encourage consumption, innovation and a secure safety net ensuring certainty, the democratic governments will eventually flounder and citizens will vote leaders out of power,” writes Will Hickey. Greece is the most prominent example. Financial markets could soon lose patience with other countries like Italy or the United States. Necessary reforms include streamlining recalcitrant bureaucracies, improving education to encourage innovation, increasing immigration or reducing promises on pensions and other entitlements, and reducing reliance on low-value exports like natural resources or manufacturing with low-skilled labor. [Note: contains copyrighted material].
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