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I can kinda understand the bad call on inflation; after all, inflation hasn't been a problem during the professional lives of virtually all policymakers today.
by rhelz 3y ago
I can kinda understand the bad call on inflation; after all, inflation hasn't been a problem during the professional lives of virtually all policymakers today.
But how could anybody could have thought that the economy would tank, once we all got out from the Covid shutdown, plus the fact that the Biden stimulus bills just pumped $3 trillion into areas of the economy (like creating Solar Farms or building Fabs) which would immediately start creating jobs?
- pcthrowaway 3y ago> But how could anybody could have thought that the economy would tank, once we all got out from the Covid shutdown, The economy tanked because they started raising interest rates.. That was certainly an expected consequence to some degree What was less expected was for inflation to remain high at the same time the economy was tanking. It's already understood that people spend less in low-inflation environments
- rhelz 3y agoThe economy didn't tank because they started raising interest rates, because the economy didn't tank.
- rybosworld 3y ago"The economy tanked because they started raising interest rates." I don't agree. The economy is underperforming compared to pre-covid and it's due to inflation. Raising interest rates is an attempt to stop the inflation. And while higher rates don't seem to actually be helping, they aren't the cause of the slowing economy.
- pauldenton 3y agoSounds like Stagflation We will really be back in the Carter years when they pull out the Misery index. Inflation + Unemployment and show us those numbers every week