Sunday, October 6, 2024

When the abnormal becomes normal with macroeconomics



"The highly abnormal is becoming uncomfortably normal." 
- Claudio Borio, 2014 


Furthering budget deficits without any austerity to bring government expenses back to normal, that is normal.

Driving monetary policy back to lower levels even with inflation still above target and price levels too high, that is normal.

Not having clear policies other than that there is a focus on data, that is normal

Using monetary and fiscal policy to solve structural problems, that is normal.

Changing the rules of antitrust policies, that is normal.

Adding more regulation to control prices that are the result of government inflation, that is normal

Using tariffs as a form of industrial policy, that is normal.

Using sanctions to punish countries but not enforcing them, that is normal.

The list can go one, but the abnormal cannot go on forever. 

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