Do policy reversals make a difference to the problem of private investment?

Harmony and optimism in overall culture helps foster animal spirits. When the culture is infused with anger and violence, it is hard for private persons to make the leap of faith required in investing

Does an environment with more policy reversals fuel policy risk and inhibit private investment? The flourishing of the market economy does not require autocratic control with a strong government that periodically releases irreversible decisions. The important thing is getting to good policies, and dispersion of power is a means to that end. There are pathways to do policy in ways which induce less policy risk. While there will always be the tactical detail of day-to-day policy decisions, policy coherence, and strategic thinking in policy help reduce policy risk. The animal spirits of the private sector matter and