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I think that the main problem is that no one has explained to people that downturns and recessions are mandatory.
We economists have made a massive disservice by narrowly concentrating on analyzing job losses and not overall economic performance.
1/ https://gnseconomics.com/en_US/2019/08/05/a-tale-of-two-deflations/
We economists have made a massive disservice by narrowly concentrating on analyzing job losses and not overall economic performance.
1/ https://gnseconomics.com/en_US/2019/08/05/a-tale-of-two-deflations/
Macroeconomics also went horribly astray.
Interest rates and, eg, completely useless academic bs of "forward guidance" started to rule our models.
Factors of economic growth were forgotten, or assumed to be unaffected by #Centralbanks .
A massive mistake. 2/
Interest rates and, eg, completely useless academic bs of "forward guidance" started to rule our models.
Factors of economic growth were forgotten, or assumed to be unaffected by #Centralbanks .
A massive mistake. 2/
Also, some economists who usually knew nothing on the forecasting -literature, went to media to explain that nothing can be forecasted.
What a load of horse manure!
Recession and crises are inherently born within economic systems, which absolutely make them forecastable! 3/
What a load of horse manure!
Recession and crises are inherently born within economic systems, which absolutely make them forecastable! 3/
People need to understand that #economy proceeds in cycles, and they cannot be stopped.
A #recession follows an expansion, like night follows the day.
What we should be thinking is, how to make our economies more resilient to "shocks" so that business cycles would not... 4/
A #recession follows an expansion, like night follows the day.
What we should be thinking is, how to make our economies more resilient to "shocks" so that business cycles would not... 4/
... turn to boom-and-bust cycles.
It more than likely that the only way to achieve this is by completely removing or at least seriously cutting the role of #Centralbanks .
They absolutely need to go. /End
#EndTheFed #ECB
@oliviabvoz @GeoffCutmore https://gnseconomics.com/en_US/2019/08/26/will-central-banks-survive/
It more than likely that the only way to achieve this is by completely removing or at least seriously cutting the role of #Centralbanks .
They absolutely need to go. /End
#EndTheFed #ECB
@oliviabvoz @GeoffCutmore https://gnseconomics.com/en_US/2019/08/26/will-central-banks-survive/
