The schism in outlook between business and political leaders is largely rooted in different time horizons. For the most part, CEOs, hemmed in by the short termism of stock markets, are focused on the next 12 months, whereas politicians are focusing on a more medium-term outlook.
As 2018 progresses, business leaders and market participants should—and undoubtedly will—bear in mind that we are moving ever closer to the date when payment for today’s recovery will fall due. The capital market gyrations of recent days suggest that awareness of that inevitable reckoning is already beginning to dawn.
Dambisa Moyo, an economist and author, sits on the board of directors of a number of global corporations. She is the author of Dead Aid, Winner Take All and How the West Was Lost.