Interest rates are falling. Some important parts of macroeconomic orthodoxy are (or should be) falling with them.
Interest Rates Just Keep Falling. Economic Orthodoxy Is Falling With Them.
Good to see at NYT mention some of the very big mistakes that our most influential economists and policy makers have made in the last decade, altho the last few decades don't look much better:
Why should I conclude from this article that “economic orthodoxy is falling”? All I see “falling” is the outdated idea of the US as a closed economy, in favor of *very orthodox* open economy analysis. About time! ,
“In the spring of 2018, when the C.B.O. modeled tax cuts and spending increases that had been agreed to the preceding winter, it forecast that higher deficits would result in higher interest rates: 3.7% on 10-year Treasury bonds in 2019.”
PC theory of inflation is dead. "That’s important because higher wage growth is, in the traditional theory, the mechanism by which a tight labor market fuels overall inflation." Interest Rates Just Keep Falling. Economic Orthodoxy Is Falling With Them.
Interest rates just keep falling, economic orthodoxy Is falling with them. American borrowing costs keep plunging: some of the basic assumptions of the most influential economic technocrats are, for the time being at least, off base