I noticed recently (just about the time you may say) how easily decision makers deal with economical issues that emerge one by one here and there in the world.
When I was younger I remember thinking about general debate on gay rights and women discrimination.
My conclusion was, that for now some regulations should be introduced, but in longer perspective, say 50 years when society will get used to equality. Who would wave all those "umbrellas" and "safety nets" we created?
Here we have our economy. We victims of Bretton Woods conference now copy the very same mistake of making half-decisions. Decisions without exit strategy.
In particular decision of pumping more money into overheated economy should be not our decision, but should be already a part of BW treaty.
We should rather be implementing some sort of exit strategy right now than thinking of "new treatment" for our sick economy. What I see, two years ago, when first turn of QE was launhed nobod said openly what if it won't work. That's one of the reasons why are we in chaos. But lets go back to the roots. Those who decided to introduce government managed currency should as well prepare some rescue policies in case the sstem will get overheted.
In other words, maybe the best thing to do now would be finishing the last chapter of the treaty, stating what to do in case of massive accumulation of goods and debt as a result of waving gold parity. Would they say in 1945 that printing press is the best solution?
I will answer this hypothetical question with grace of professional economist.
I don't know.
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