Steady Economic Policy

Saving one bank and letting another fail is not a steady policy and drastically increases uncertainty in markets. The same is true for ad-hoc laws that are designed to nationalize banks that were saved with taxpayers’ money, as it happened in Germany. While the supposedly systemic risk might make it necessary to violate the principle of a steady economic policy in the financial sector, there is no reason why it should not hold true in the goods and services industries. A world without Chrysler or Opel does not mean people have nothing left with which to travel from point A to point B.