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by AnimalMuppet
1145 days ago
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You will never have ongoing stability, at least not in the way you're looking for. It's a dynamic system; it's never going to hold still. You can't have static stability in the economy. It's like driving a car. You're only a few seconds away from crashing most of the time. But you don't crash, because you keep steering. In the same way, the economy is as stable as it is because the Fed keeps steering, not because there's some condition where it will be statically stable forever after. After each adjustment, people change their behavior to fit the new conditions. That changes the conditions and sows the seeds of the next problem. So there always has to be a next adjustment coming. Those periodic adjustments are what keeps the system stable - but they don't feel like stability, because the system isn't statically stable. |
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