C’est La V No More by Krugman
Business cycle recessions used to be induced by the Fed raising rates. Fiscal spending and consumer demand (wage inflation) would drive inflation. Until the late 80s S&L recession and the dot com bubble recession.
Ever since Reagan broke PATCO and the Japanese came online, inflation and the overheating of the economy wasn't being driven by wage demands and consumer demand. The problem was popped asset bubbles. Recession were now balance sheet recessions. Deregulation and the upward redistribution of weath was the cause of the overheating, not wage inflation, trade or fiscal policy.
Original memestarter.
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