Raising interest rates could
mean deep recessions.
Not exact matches
One of them is that
deep into an expansion, higher economic confidence reduces the likelihood that many markets will panic at the same time, and
means market - specific stories are often bigger drivers than the more binary question of «
recession, or not?»
Which
means that our capital misallocation is extensive and long - term, our
recessions are long and
deep, our growth trend is shallow, and our complacency about how right we are in contrast to the benighted past is callow and pitiable.»
As we know, the materialisation of some of the risks that had built up in the financial system, followed by a financial crisis,
deep recessions and slow recoveries, has
meant that much more has been demanded of central banks in recent years, especially those in the major jurisdictions.
A cynical view suggests that all the talk about the
recession fostering frugality, living within one's
means, and the virtues of helping and being helped by one's community is just talk, and that what's actually happening is that people are building up a
deep well of perceived deprivation, a backlog of buying, such that when the economy recovers we'll see another binge of overconsumption, carrying us farther still from a satisfying life and speeding the collapse of planetary life support systems.