The Quiet Coup
I’m reading an excellent article by Simon Johnson that draws striking parallels between the current financial crisis in the United States and emerging economies: The Quiet Coup. It’s a fascinating look into our economy from the eyes of a former IMF economist. I am providing the following introduction to the article to pique your curiosity.
The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.