Robert J. Shiller (Nobel '13) delivered the Godley-Tobin Lectures, an annual lecture delivered at the Eastern Economic Association meetings, on the subject of “Animal spirits and viral popular narratives” (Review of Keynesian Economics, January 2021, 9:1, pp. 1-10).
One of the key pillars of the consensus bullish view about 2021 is the Chinese recovery, supported by very optimistic estimates of growth in services and exports.
· As global stock markets continue to rise, commentators talk of a bubble · Shorter-term indicators suggest the markets have run ahead of fundamentals · Expectations about the speed of economic recovery from the pandemic remain key · Even a slight moderation of fiscal and monetary expansion could precipitate a crash
In this era of monetary fiction, one tends to read all types of undocumented and misguided views on monetary policy. However, if there is one that really is infuriating is the MMT science fiction.
The current international standards for how a country should compute its GDP suggest that illegal activities should be included.
Inflationists are happy with the current economic forecasts.
Many economists point out to the “abnormal” rise in savings as a bullish signal that will drive a stronger recovery and a consumption boom.