Pointing to the “inwardly-looking sectors” in Dr. M. El-Erian’s recent op-ed to FT seems to be the right way to re-set a pragmatic discussion of the economic crisis. Despite some growth, much remains uncertain in terms of recovery. Many of the points raised relate equally to advanced and “emerging” markets. Reducing discourse to validity of QE2, QE3, QEetc…is not helping, but only prolongs the structural problems.
Incidentally, a key proposition of the “innovative fiscal policy” is the state’s strategic role in nurturing the economy’s backbone. Attention to education, strategic (innovative) economic sectors support, with the right public-private balance echo above points.