Why are there economic booms and busts, those long swings between expansion and slowdown? Traditional explanations focus on bad monetary policy. My research argues that they are usually structural, the result of powerful shifts in expectations about future productivity and profitability.
Why are there economic booms and busts, those long swings between expansion and slowdown? Traditional explanations focus on bad monetary policy. My research argues that they are usually structural, the result of powerful shifts in expectations about future productivity and profitability.