Finally, it came out /Glenn Hutchins, FT, 29 January 2020/. We are really all wrong on productivity, rate of inflation, real interest rates, real GDP growth figures, national wealth, size of global catching-up, etc. (See further) We miss the accelerating pace of wealth creation globally and within our national economies.
Why? Rewriting our mindset is never easy, during paradigm shifts it is still harder. Admitting the truth might cause a watershed for fiscal and monetary policies. Some fear of creating more bubbles, others are afraid of escalating budget deficits and public debts.
Nevertheless, fear is not the best advisor in our times.
Re “What if we are all wrong on productivity?”
Governor Matolcsy, MNB, the Central Bank of Hungary
