Like stock markets, ratings agencies tend to focus on short term performance. If a country's economic policies and performance are implemented solely to please these agencies, then we are on a slippery slope to disaster.
Executives who have an eye on the performance of the company's stock take decisions which are not in the best interest of the company and its stock holders in the long term.
The approach should be to focus on the long term benefits, even if there are short term shocks and pain. In the long term, there will be a convergence.
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