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I bought into that for a while (having followed that variety of economic opinion). The idea was that the whole system was hanging by a thread. A moderate shock
by orblivion 4y ago
I bought into that for a while (having followed that variety of economic opinion). The idea was that the whole system was hanging by a thread. A moderate shock would make it all fall over. Well, we got a hell of a shock in 2020, and we're doing economically kinda bad, as one would expect regardless after such a shock, but not catastrophically. I don't know what the right model is, but I no longer think that this is the one.
- guerrilla 4y agoIsn't that just because of more non-conventional intervention though?
- Magnets 4y agoGovernments used QE to soften the shock from covid lockdowns and basically subsidise the economy. We are now seeing the consequences of that decision.
- orblivion 4y agoI perhaps could have specified that part of the prediction was that if QE was used substantially more to deal with said shock, it would lead to hyperinflation. What we have now looks (to me) like bad inflation but not hyperinflation.
- deleted 4y ago[deleted]