Global Recession and Policy Choices

The government must give priority to “what must be done” and not to “what it wants to do.” The situation may put us in a quandary, but we must not go wrong in policymaking.

This may be a treatise on a situation going awry. We indeed are in a quandary because we are to choose the lesser of two evils. We are coping with an anxious world. The storm is impending.

Larry Summers, former treasury secretary of the United States and professor at Harvard Kennedy School, has glumly said the level of risk in global markets today is reminiscent of the conditions seen in 2007 ahead of the great recession. He warns, "This is certainly not a time for firefighters to book a vacation."