I don’t know when the next recession will happen.

January 6th, 2016 at 8:22 am

But I do strongly suspect that policy makers–both the monetary and fiscal ones–won’t be ready for it. Over at WaPo.

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3 comments in reply to "I don’t know when the next recession will happen."

  1. Amateur says:

    I’m pretty sure that if Republicans take the presidency and keep the congress that the next recession will be during that term. Otherwise, I have no idea.

  2. Tom in MN says:

    The problem is the Fed has chosen to get their water from the small 2% inflation pond, which has been steadily shrinking over the last several decades (not global warming, but instead dropping 10 year rates). They would find a lot more water to fight the recession fires if they would only move down the road to the 4% inflation lake.

    More automatic stabilizers would be nice, but you are talking to people who won’t even index things for inflation.