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A Recession Economics Checklist

Three crisis policy principles:

  1. Consider no policy during recession that would not be equally useful during prosperity. 
  2. Consider no policy whose intention is to evade or cushion the crisis. 
  3. Consider no policy that is not intended to be permanent.

These principles have implications-in-common:

  • Use crisis to implement policies that should have been introduced during prosperity
  • Exit crisis and enter prosperity with policies for market-led innovation-led growth
  • Confront known problems with known solutions head-on as a first priority
  • Do not postpone structural adjustment in the expectation of easier days to follow
  • Growth achieved by political monetary and fiscal levers alone will not create prosperity

Boundary rules by living authors:

  • James Buchanan leads in provocative ideas for constitutional reform. 
  • Hernando de Soto leads in ideas about minimalist rules for information disclosure.
  • Nassim Taleb leads in ideas about minimalist rules for systemic risk avoidance. 
  • John Taylor leads in ideas for non-partisan doable rules-based monetary policy.

Random selections from a newish “I Agree” file: