The Economy in Perspective
Sigmund Freud has said that every normal person, in fact, is only normal on the average. So it is with business cycles …
Sooner or later, something will throw the U.S. economy off the brisk growth trajectory it has followed since 1995. Reverberations from the collapse of East Asian economies might do it, despite the apparent durability of the U.S. until now. Or the financial sector might seize up, notwithstanding the as-yet-unshakable support of stock market investors. Perhaps it will be something more traditional, like tight monetary policy chasing after accelerating inflation. Whatever the cause, lately it seems that everyone on the planet is anxiously awaiting the economy’s return to normal behavior. Human beings (especially the economists among them) can tolerate ambiguity only so long.
Suggested citation: "The Economy in Perspective," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-02, pp. 01, 02.01.1999.