November 23, 2015

Recession, Hyperinflation, and Stagflation: Crash Course Econ #13

If you're ever put in charge of a national economy, there are a few things you should try to avoid. Before you laugh, just remember, you COULD be in charge of an economy someday. Someone has to do it, and anyway, if it could happen to Alan Greenspan, it could happen to you, too. The first thing you're going to want to avoid is hyperinflation. Don't print too much money, okay? Actually, it's a little more complicated than that. Jacob and Adriene will explain. You're also going to want to stay away from recessions, and especially depressions. In the world as it exists today, continued growth is the only path to viability. While some argue for sustainability or even controlled recession, you're not going to keep a job as head of central bank thinking like that in this day and age. Also, avoid stagflation, which is a stagnant, no-growth economy combined with inflation. It's just the worst. Don't do it. All this and more on this week's Crash Course Economics.

3 comments:

  1. BUT! What if the data is massaged to help modify consumer behavior - as done all the time by the BLS and the Fed?

    Tell us about Hedonics and substitution and it's impact on things like Social Security increase calculations. If you substitute hamburger for steak - what if I can't afford hamburger? Do they substitute that pink petri dish meat they were selling until they got caught?

    While you are at it - pls explain the Social Security Trust Fund without laughing.

    Or What QE REALLY means? Print money and buy debt...that works right?

    Economics is not a science.

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  3. Make that consumer AND investment behavior... And if you are close to the Fed's money spigot and have the pre-released notes... you can frontrun Wall Street.

    It's an economic miracle - once called fraud and counterfeiting.

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