If we look at the post-1990 era in the developed world, we see a relatively similar pattern: long expansions with relatively low economic volatility, punctuated with short recessions. In fact, in the case of Australia, the expansion was only put to an end by the Pandemic of 2020. However, if we look past the low volatility, we also see that growth rates were relatively low, and employment conditions generally weak.
NOTE: This is an unedited excerpt from a chapter within an upcoming manuscript on MMT and the upcoming recovery. The chapter describes the post-1990 expansions, which were characterised by disappointing growth. This sluggishness is explained from the perspective of MMT. This section is an introduction, and is my way of showing how slow growth surprised the consensus - repeatedly.
"Hollowing out." Rising inequality and deterioration of job quality, in particular due to offshoring of manufacturing. What "growth" there was went largely to the top. Repeat coming?
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