No way to run the world's biggest economy

ARTICLE - The article says that the US economy needs a sizeable short-term stimulus to prevent deflation. While the Federal Reserve has led the way, the chronic shortage of saving in the US has reduced policy options, including the possibility of tax cuts.

First published in the UK edition of the Financial Times, 17 January. The writer, Stephen Roach, is chief economist of Morgan Stanley.

The US economy is on the brink of deflation. Thankfully, Washington is trying to come to the rescue. The

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