Rogoff, the Great Recession and Economic Fairness


When inflation was tamed in the 1980s and early 90s it represented an enormous wealth transfer from debtors to creditors, put strong downward pressure on wages and created Wall Street fortunes, some of which have lasted to this day.

This was not particularly fair, but it was the inevitable side effect of a policy to bring growth and stability to the US economy. The opposite policy is now needed. It too will not be “fair” but we are not in the fairness business, we are in the macroeconomic growth and stability business.

 

 

Modeled Behavior

via Rogoff, the Great Recession and Economic Fairness.

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