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> If it's a supply shock recession, they usually come with significant inflation and more money will make it a lot worse. Surely in the beginning, with just Ch

by yumraj 7y ago

> If it's a supply shock recession, they usually come with significant inflation and more money will make it a lot worse. Surely in the beginning, with just China impacted, that was the case. But right now with a global pandemic it's not clear if its a supply shock, or both. Curious, if supply is lower and the demand lowers more, then what does it mean. A depression??

a_tractor 7y ago
>Curious, if supply is lower and the demand lowers more, then what does it mean. A depression?? Seems like break even? Its kind of like how a person who normally works out everyday and is very active might reduce their caloric intake if they break their leg. From 4000 calories a day to maybe 2000 very suddenly might sound like a problem if he wasn't just gonna be sitting at home all day for a while. But obviously its more complicated than that, and the system we are talking about is not even close to organic, and in a more equivalent scenario the guy with the broken leg sitting at home is also no longer able to harvest his crop for the season to provide the food a local village depends upon, so...