Kondratiev wave.
The US economy is in the middle of the 35 years long period with depressed economic conditions. Any recovery can be just transient. Do not trust good news – the US economy is still stagnating as low GDP growth rate and very low inflation prove.Economics as Classical Mechanics — Analyzing economic data with a physicist
The US economy is in the middle of 35-years-long period with depressed economic conditions
Ivan Kitov | Doctor of Physics and Mathematics, Lead Researcher at the Institute for the Geospheres' Dynamics, Russian Academy of Sciences
2 comments:
Market superstitious non-sense. Large fiscal deficits could maintain high growth rates and allow the private sector to de-leverage. What is more, is if the fiscal deficits aren't wasted on stadiums for sport, and transfers to maintain high levels of unemployment (bread and circus), then we can actually increase productivity and have higher standards of living long into the future because of the fiscal largess today. Markets don't rule, wave theories and fibonacci sequences might naturally occur if you let them, but we don't have to be ruled by this stuff.
Agree, Ryan, but it also fits with Minsky's financial instability hypothesis, which he didn't think it possible to tame completely in a capitalistic system — even though it could be done in principle.
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