Posted 12/27/2023, 4:25:21 AM
US Defies Economists' Recession Predictions Despite Falling Inflation
- Many economists predicted a recession in 2023 due to high inflation, but the US has avoided it so far, defying expectations
- Prominent economists like Janet Yellen, Christina Romer, and Paul Krugman have theories and models that suggest disinflation leads to recession
- Their theories have been influential, yet reality has not matched their predictions this time
- Economists don't fully understand why no recession occurred despite falling inflation and aggregate demand
- Macroeconomics has become highly politicized rather than forthright about its limitations in predicting the economy