4 ms·
but it can be, of course. overstimulation of the economy leads to unsustainable bubbles, which when burst lead to recessions, and an unexpected and unnecessary
by pas 3y ago
but it can be, of course. overstimulation of the economy leads to unsustainable bubbles, which when burst lead to recessions, and an unexpected and unnecessary understimulation can very well cause a recession. (case in point in 2008 the Fed likely overreacted[0], because everyone was so scared of the insane housing prices, claiming there's no economical reason for them, whereas now it's clear that there are multiple serious factors cooperating to keep housing prices absurdly high.)
[0] https://www.fullstackeconomics.com/p/the-2000s-housing-bubble-was-greatly-exaggerated https://www.fullstackeconomics.com/p/the-2000s-housing-bubbl...
- UncleMeat 3y agoI guess what I'd ask people who say "the recession is just around the corner, look at datapoint X" to also say what datapoint they'd use to determine that the recession is not just around the corner. Because it feels like the reasoning for why the recession is just around the corner simply fluidly moves between metrics as things change but the "just-around-the-corner-ness" never does.