Loading ...”
In other words, El-Erian thinks the Fed and its counterparts around the globe have kept the spigots of easy money flowing for too long, hoping growth will come around.
“We as a society fell in love with finance as the engine of growth,” he said. “Up to 2008, we depended on private finance. Since 2008, we’ve depended on central banks. We have forgotten what it takes to growth an economy in an inclusive manner.”
The economist said these three structural steps could help spur stronger economic growth:
- Reform the tax code;
- Deal with pockets of over-indebtedness such as student loans;
- Embark on an infrastructure program to fix the nation’s roads, bridges and transportation systems.”
- http://www.cnbc.com/2016/08/17/the-us-better-take-3-actions-soon-to-avoid-recession-mohamed-el-erian.html