The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even worse.
The 1958 pandemic killed twice as many people as COVID-19 has so far. Yet, the economy in 2020 has collapsed far worse than either in 1958 or the far worse pandemic of 1918.
Now, more than ever, we're in uncharted waters when it comes to central banks and monetary policy. Economist Brendan Brown takes a look at where we are and what the future might hold for central banks' race to the bottom.
Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.
Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.
After 2018, the US economy was already headed toward a recession. But bailouts and lockdowns have made things even worse.
The latest installment in the Understanding Money Mechanics series summarizes the theory of the business cycle originally published in 1912 by Ludwig von Mises and elaborated by Friedrich Hayek.
Crashes are fast, like that first hill on a coaster. Recoveries are not, for the simple reason that production is more difficult than destruction.
Crashes are fast, like that first hill on a coaster. Recoveries are not, for the simple reason that production is more difficult than destruction.
