Tuesday, April 30, 2019

Aggregate lags

How long was the effect on the precious metals market after Nixon exited the market in 1972? How long did domestic oil production take, to response  to export controls lifting? Lags

Lags happen when a impulse response hits a market with finite liquidity, the market drags its feet sand cycle through the adaptation.

But oil knew about the lags, and suspect the oil control might be lifted? Great, then they lag without cycles.  Our MMT moment will be a lag without cycles.

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