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Yes, of course, I understand that. But in the middle of a recession that becomes Sophie's choice: do you raise rates to curb inflation while killing the chance
by danhak 6y ago
Yes, of course, I understand that. But in the middle of a recession that becomes Sophie's choice: do you raise rates to curb inflation while killing the chance of a recovery?
- AnimalMuppet 6y agoAh, I see your point. Still, this isn't the stagflation of the 1970s. While there may be underlying problems, the main issue is that Covid shut down parts of the economy, which also meant shutting down parts of employment. The trick really isn't to avoid inflation. The trick is to make it back to approximately normal without killing too many businesses and bankrupting too many families (while also not killing too many people). If inflation happens as a result, but we get back to a healthy economy, then we can worry about inflation. For the next one or two years, I don't think that inflation is the issue to focus on.
- danhak 6y agoThat is the big question and I think the answer remains to be seen. Is Covid an acute crisis where we quickly bounce back to "normal," or is it the catalyst for a broader deleveraging that may have been due for several years and with many of the layoffs being "sticky"