What’s next for the economy? That’s certainly the question on many people’s minds these days.
The official (government and financial industry) opinion is well known. Green shoots are springing up, the worst is behind us, our efforts to resolve the crisis have been a big success, no systemic changes are needed.
But many of us are dubious. We think the government has mis-diagnosed the problem, and that its medicine will only make the situation worse.
Simon Johnson at the Baseline Scenario website lays it out better than I can, in his essay today What’s Next?