Today s short term crisis does not materially alter their long term prospects.

True, there is no inflation problem in the short run, but the ECB s monetary policy focuses on the medium term.

But this is not a long term risk worth taking.

This analytic problem is hardly unique to short termism.

In the long run, more diversity is needed.

In the long run, however, the outcome of backing down may not be so clear.

To be sure, retrenchment could entail some short term costs but the longer term benefits would be much bigger.

No one doubts the depth of Europe s official long run commitment to integration.

I am not so bullish on Europe and America.

So long as spending goes to investments yielding a modest return of 6 , the long term debt will be reduced, even as the short term deficit increases, owing to the higher tax revenues generated by the larger output in the short run and the more rapid growth in the long run.

But European elites, preoccupied with short term fixes, have not considered the long term need for such revisions to their own detriment.

Maybe this allows him to focus more on long term fundamentals and thus to make investments that may not perform well in the short run.

The second is that medium term inflation expectations no longer remain sufficiently well anchored.

Short run stability certainly seems attractive right now.

There is no contradiction between delivering high returns and adopting a long term approach.

Regrettably, however, the situation is not tenable in the long term.

To turn back would jeopardize the long term strategic interests of both countries for short term political expediency.

We should adopt policies that benefit the economy in the short run at reasonable long run cost, and reject those that do not.

Of course, we know that a different approach will be needed in the longer run.

Arbitrary and prolonged pre trial detention remains frequent throughout Afghanistan.

But the long term nature of this challenge must not lull us into inaction.

But is an EMF really what is required in the long run? I think not.

But, at least in the short term, there seems to be no alternative to Calderón s strategy.

Of course, economic engagement will not solve the nuclear conundrum in the short term. Nothing will.

Moreover, infrastructure investment not only creates jobs in the near term, but also promotes long term competitiveness.

In the long run, however, the outcome of backing down may not be so clear. China, in particular, should weigh carefully the long term political price of celebrating its supposed victory over Japan.

Thus, although Serbia s loss of sovereignty over Kosovo will undoubtedly be painful in the short term, the long term gains for the entire Western Balkans region from eventual EU accession are vastly more significant.

But tying executive payoffs to long term results does not provide a complete answer to the challenge facing firms and regulators. The question still remains long term results for whom?

They can see short term returns, but they do not understand very well how those returns are generated.

This manner of governance bodes well neither for economic growth nor democracy in the long term.

It is also a symbol of futility, because it does not constitute a viable long term solution.

There is no doubt that the long term price of insuring against crises is worth paying.

These are key issues in the short term, but, as every economist knows, long run economic growth is determined mainly by improving productivity.

But, in doing so, it should adhere to the principle that policy responses to short term problems must uphold, not undermine, long term reform priorities.

The problem is that such long term investments bring results only in the medium and long term.

Not all long term dictatorships, however, end in disintegration and mayhem.

This can work in the short term, but it cannot be sustained over time.

To achieve sustained growth, a balance between short term and long term objectives must be struck.

CHICAGO Democratic governments are not incentivized to take decisions that have short term costs but produce long term gains, the typical pattern for any investment.

But the lessons that the government may draw from the crisis may not be the best guides for the long term.

The alarming tendencies we are seeing today may be short lived and with no serious consequences.

Europe s leaders are so preoccupied with the crisis of the day that they have no time to ponder the long term consequences of their actions.

Long term stockholders alone do not encourage a firm s managers to manage for the long term.

So much for the long term.

America s gravest fiscal problem is the short and medium run deficit between tax revenues and spending.