THE economics profession can resemble the used-car business, although most economists genuinely believe in their product. Everything we sell is reliable, responsible and dynamic.But for all our sincerity, that doesn’t mean we’re selling something that will actually get you to where you want to go.The risk is particularly true of fiscal and monetary policy.We talk about "strong" exchange rates when we mean they are uncompetitive, undermining exports and promoting imports. We praise "austerity" and "fiscal stability", basking in the aura of good governance even when the associated cutbacks in services will deepen inequality, lowering long-term growth prospects. We promote "responsible monetary policies" that irresponsibly slow growth in a society that simply cannot manage higher joblessness or poverty.All these policies, dressed in the terminology of responsibility and sound management, have been on display recently.At a time when global economic growth is fragile and national growth ...
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