Prescott gives advice on economy

Economics professor Edward Prescott says that as the incoming president, Barack Obama will have to resist the temptation to change as many rules as possible when it comes to the economy. “This is usually the inclination of an incoming president, but this will be especially true given the current financial turmoil and the perceived urgency to ‘do something!’ However, […] changing the rules of the game too dramatically can have unintended consequences, which are often suboptimal. Indeed, even hinting that rules will be changed can alter expectations and change behavior.” Article source: Newsweek