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Legal Commentary

: Economics of Contempt

Prescient

By Anonymous

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William Poole, writing in 1991:
[A]ny policymaker who is unwilling to play chicken with the markets on the issues will be conceding a lot in Washington infighting over policy. This is another reason why it is so important to change the incentive structure in private markets to promote stability. Government policy involves conflict, and conflict inevitably brings surprises and disappointments to the markets.
From The Risk of Economic Crisis (Martin Feldstein, ed., NBER 1991).

Full post as published by Economics of Contempt on October 06, 2008 (boomark / email).

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