John Taylor: Times have changed

A Slow-Growth America Can't Lead the World

After World War II, the U.S. promoted international economic growth through reliance on the market and the incentives it provides. Times have changed.

By JOHN B. TAYLOR

When President Obama meets with his counterparts from other G-20 countries in Cannes later this week, American economic leadership will, unfortunately, largely be absent.
At the most recent meeting a year ago in Seoul, the G-20 rejected the president's pleas for a deficit-increasing Keynesian stimulus and instead urged credible budget-deficit reduction and a return to sound fiscal policy. And on that trip he had to defend the activist monetary policy of the Federal Reserve against widespread criticism that its easy money was damaging to emerging-market countries, causing volatile capital flows and inflationary pressures.
With a weak recovery—retarded by new health-care legislation and financial regulations, an exploding debt, and threats of higher taxes—the U.S. is in no position to lead as it has in the past...
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Comment: Along with Cochrane (see below) this is one of the better contributions. It seems that the clattering Roubini-Krugman kind is on the way out.