Brendan Keenan: Rapid change means we must be prepared to alter our course
Published 29/09/2011 | 05:00
WHEN the facts change, I change my mind, the economist John Maynard Keynes said; before asking the critic who had accused him of inconsistency, "What do you do?"
What are they going to do? The facts have changed dramatically, and are changing by the day. Can official and political minds, so set in their ways, change fast enough and far enough?
The question applies both at home and abroad. The new foreign fact that must be faced is the threat of imminent recession in Europe and the USA. Official forecasts of recessions may be rare -- despite the joke about economists predicting five of the last three -- but markets have a good record in signalling their arrival.