This week’s “Long Reads Sunday” reading is from macro analyst Lyn Alden and focuses on the inflation vs. deflation debate in historical context.
The article looks at:
- When monetary policy is effective versus when fiscal policy needs to take over
- How short-term debt cycles add up to long-term debt cycles that have very different remedies
- Why long-term debt cycles inevitably end in default or devaluation
- Why the conclusion of the last long-term debt cycle in the U.S. – the 1930s and 1940s – suggests that devaluation is the most likely outcome