Normal economic policy hasn’t really been true since the 2007 financial crisis. Rates were kept at historically low rates because growth was anemic and everyone had seen Japan fail to pump up its economy. To some degree there was also thinking that countries in this situation should provoke inflation to get the growth flywheel growing again; at least the fixes to inflation are known vs deflation.
Well, it turns out that we did it with the COVID economic shocks, and for a while there was talk of a “soft landing” but that’s all but disappeared from the conversation.
Well, it turns out that we did it with the COVID economic shocks, and for a while there was talk of a “soft landing” but that’s all but disappeared from the conversation.