Did monetary offset cause the Great Recession?

posted by
December 20, 2016
by Scott Sumner  
Posted in Commentary

"In the past, I've argued that tight money caused the Great Recession. But what caused the tight money? One answer is too much weight placed on inflation targeting, combined with a backward-looking approach to inflation. Consumer price inflation was quite high during the first half of 2008, due to rising oil prices and a weak dollar." (12/20/16)

  • dL

    “Great Recession,” lol. I repeat: Economics is one of the sciences where professionalization does not advance the science. Complete epistemic closure tied to a particular school of analysis. It’s like the old arguments of the competing medieval scholastics, complete with religious epoch titling like GREAT RECESSION.

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