Wednesday, November 4, 2020

Status Quo Election And Another Lost Decade — Brian Romanchuk


Neoliberalism still rules. Fiscal conservatism waits in the wings.

Bond Economics
Status Quo Election And Another Lost Decade
Brian Romanchuk

8 comments:

Matt Franko said...

“ Given that even the pandemic shock was not enough to generate inflationary pressures,”

Yo the pandemic response was to shut things down not some major economic expansion...

????

S400 said...

Yo you yourself has said no one knows what inflation is and yet you give a recipe for it and think you know what it is.

Matt Franko said...

Recipe is a figure of speech moron I didn’t provide a “recipe!” for anything...

You Art degree incompetent unqualified dialogic continuous figure of speech spewing economorons also apply the figure of speech “inflation!” to events that coincide with an increase in price..

Why would price increase during a policy period where govt has locked up businesses and physically prevented previous rates of consumption?

This is like when you morons say “inflation!” meanwhile a global cartel is conspiring to fix price of petroleum...

Price goes to $150 you say “inflation!” then we bust the cartel price goes down to $35 then goes up from $35 to $40 and you say “inflation!” again.., WHEN IT WAS $150 previously..

Get some proper training...

Peter Pan said...

Another decade of reading MNE - yay!

Brian Romanchuk said...

Why would there be inflation? Government transfers allowed consumption patterns to be continue, while supply was disrupted.

I didn’t expect much in the way of higher observed inflation, but it was certainly possible.

Matt Franko said...

“Government transfers allowed consumption patterns to be continue,“

GDP was measured down 32.9% .... numerous businesses were ordered completely closed for over 2 months now only allowed % of capacity... international travel banned still is...

GDP = consumption + investment + government expenditure + exports – imports.

Consumption and investment collapsed... like you say G was the same... ex/Im probably a wash...

https://www.bea.gov/sites/default/files/2020-07/gdp2q20_adv.pdf

“ The decrease in real GDP reflected decreases in personal consumption expenditures (PCE), exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending”

Pandemic policy completely bearish...

Brian Romanchuk said...

Sigh. I wrote my comment quickly, and did not spell things out explicitly enough. If we look at multiple countries and not just just the US, it appears consumption patterns were disrupted less than production. Government transfer payments were used to bridge the lack of income.

Joe said...

Biden is a conservative. He creams his pants just thinking about compromising with Republicans. So we're going from far right to just standard right wing government. It's likely to be pretty disastrous.. Tom Cotton or Tucker Carlson couldn't possibly be more happy with the election.