The problem of short-termism is systemic. Managers will only invest for the long-term if investors evaluate companies based on their long-term value. But, investors will only gather long-term information if they can use such information - which requires them to have the freedom to trade on it in the short-term.
Additional policy measures -- beyond monetary policies -- are vital to make a durable exit from the global financial crisis and to safeguard financial stability. Crisis legacies need to be addressed. The traction of monetary policies must be increased with complementary reforms and financial excesses need to be contained.
The global economy looks poised to display better growth performance in 2014. Leading indicators are pointing upward -- or at least to stability -- in major growth poles. However, for this to translate into reality policymakers will need to be nimble enough to calibrate responses to idiosyncratic challenges.