Tuesday, November 5, 2019

Milt Friedman's plucking theory and economic rescaling

In sandbox it is a requant, a non adiabatic motion to rescale.  One in the same.

Uncle Milt failed to mention that at the end of a monetary cycle we do not pluck all the way back.  Obviously, in 2008 we plucked back to our monetary imbalances and lower growth. I think we plucked again in 2016, and may be plucking along a deflationary path from now on.

Our macro economists are in a bit of a freak and are blaming the herding effect, and have begun  period of censorship. Sort of the information blackout before a repricing, down.

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