Commentary: Time To Act

The forces wreaking havoc can also lay the groundwork for a resurgence of growth

Has the global economy come undone? Is the American model of free-market capitalism, the de facto ideology of the post-cold-war period, in retreat? There are many messages in the recent volatility of the stock market, but the most important may be that fundamental assumptions about the future of the American economy have been completely altered by the crises in Asia and Russia. Stock prices are reflecting a world that appears to be headed toward a deflationary slowdown, a world where countries are opting out of a free market system everyone took for granted. A revaluation of future profits and current assets is under way.

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