Muddling through and Policy Analysis. Hobble and Muddle - Mohamed A. El-Erian. Exit from comment view mode.
Click to hide this space NEWPORT BEACH – Colleagues from around the world recently gathered at PIMCO’s headquarters in California for our annual Secular Forum, when we leave behind high-frequency issues for a few days and, instead, debate what the next 3-5 years hold for the global economy. The perspective is global, informed by the insights of outside speakers, and the focus is on what is likely to happen, as opposed to what should happen. The last two Secular Forums projected that, after the global financial crisis, the world economy would not reset in its traditional, cyclical manner.
The quality of muddling. Ezra Klein, Karl Smith, and Ryan Avent today debate the merits and demerits of muddling though vs “grand bargains” and bold solutions.
Here’s Smith, insightful as always: The opportunity to muddle through is a gift. It allows one to make changes at the margin, to monitor their effects and to update accordingly. It allows us to avoid massive often useless sacrifice.