When we talk about economic recovery or growth, we talk about life and living.
We talk about how to live, ways of living and how to be excited about life.
The current talks about policy measures and responses to the economic collapse are like the talks of pharmacists and doctors. You have a headache, take a panadol. You have stomach cancer, remove your stomach.
But the economy to come alive only when the world has a direction.
Where in the world is the future?
Economic planners have to sit down with bankers to figure out which way to go in future. If economic planners know where the future lies.
Or do we leave it to the innovators to come up with new products to excite new customers.
Or do we leave it to the speculators and holders of cash to take advantage of sharp asset price reduction as a basis for the world to engineer for itself somehow a recovery?
An economy grows because there are investors who are brave enough to put their assets on the line to produce goods and services for which there is a demand.
What does the world want?
Certainty, investment, production and consumption - in this order.
Certainty is currently being bought by the holding of cash.
Investment will come in when asset prices are seen to have stopped falling - and only after what potential investors feel have fallen to their proper values and not because some politicians stopped the decline at some inflated prices.
Production will then arise out of those investments.
After investments comes growth in income and hence consumption.
Monetary measures, ha!