But I do strongly suspect that policy makers–both the monetary and fiscal ones–won’t be ready for it. Over at WaPo.
I don’t know when the next recession will happen.
But I do strongly suspect that policy makers–both the monetary and fiscal ones–won’t be ready for it. Over at WaPo.
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.
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.
Agree!