To escape the no-growth trap, regulators must allow the “risky” to compete freely for access to bank credit

Sir, James Mackintosh, in “The world is halfway through a lost decade” August 11, writes: “The pressure is on for western governments to ease austerity plans, while the entire world seems ready for more aggressive monetary intervention. It is hard to see how this could lead to more than tepid growth, and there is an ever-present risk of a Spanish-style bond crisis.” 

I agree, the only way to escape the low-or no-growth trap is by eliminating the regulatory preferences for lending to the “not-risky” and thereby allow the “risky”, the small businesses and entrepreneurs, to compete freely for access to bank credit