Preamble: I’m currently on hiatus for work. I won’t have time to post – so I’m sharing a few things to keep you entertained until I get back. I think that these explanations of the Great Depression AKA the Great Deflation are a really good cliffnote summary of the different economic schools of thought:
Courtesy of: The Money Project
Rolling Alpha posts opinions on finance, economics, and sometimes things that are only loosely related. Follow me on Twitter @RollingAlpha, and on Facebook at www.facebook.com/rollingalpha. Also, check out the RA podcast on iTunes: The Story of Money.
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Scott January 19, 2018 at 07:14
There are many articles on RA about situations that have gone wrong, and I understand J did a thesis on the Zim hyperinflation. I’ve read many of them and I’ve enjoyed them.
My question is a bit of the reverse- what happens when an economy is stimulated when most indicators say that no stimulus is needed? does the bubble get bigger and set up for a bigger drop? or is this the missing elixir that will allow markets to continue to run higher and higher? and most importantly, if that bubble does grow bigger and when it bursts it falls, what is left to stimulate the economy back out of recession if the metaphorical arrows have already been shot? (I’ll give a free pass and specifically not ask about inflation yet).
obviously referring to the current situation in the USA with low unemployment, stock indices at all time highs, bond bear market, and now a tax stimulus for business (albeit with stagnating wages and widening gap in equality)?
P.S. I’m name dropping Parsons. boom.
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