These days, we are treated to an interesting spectacle. Although the ‘greedy beast’ called inflation met its demise in plain view quite some time ago, the flock of sheep continues to bleat as if nothing had happened. The fear of the sheep is fueled by the ‘experts’ who are paraded through the media every day, …
German Chancellor Olaf Scholz is not an economic expert. Nobody expects him to be. However, the head of government of the world’s fourth largest industrialised nation should have advisors to protect him from disqualifying himself in economic issues. He obviously does not have any such advisors. …
In the past, there were still recessions in the economy. These were phases of shrinking gross domestic product (GDP) that lasted two, three quarters or a whole year. Rising unemployment and shrinking incomes were practically always the result. And monetary policy always had to lower interest rates and the state had to intervene by increasing its own (debt-financed) spending if it wanted to prevent worse, …
Cross-posted from Brussels Morning (https://brusselsmorning.com)
Last week, the Federal Statistical Office in Germany presented its first estimate for 2020’s gross domestic product (GDP). The statistical service forecasts a decline in economic output during the year of the coronavirus at 5%. In its press releases, …
