The U.S. Needs Economic Regime Change – WSJ

History will give a full accounting of the grave errors committed in recent years in economic policy. A central lesson is already clear: Nothing is as expensive as free money.

The costs of the Federal Reserve s zero-interest policy are multiplying: The misallocation of capital goosing the price of the riskiest and least-productive of assets set the conditions for boom and bust. The financing of the big state set the country on an unsustainable fiscal trajectory. The extraordinarily loose financial conditions created herd behavior among market participants and firms and complacency among policy makers, including regulators. The surge in inflation substantially raised the cost of living for citizens and undermined business planning.

via www.wsj.com