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
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