Oh Ms. Keynes, Where Are You?

An Immediate Need For Change

The study of economics came under attack in the 1930s. The result was a paradigm shift in economic thought and policy. 

It is time for that shift today. Current policy methods and expectations for how the economy should behave became antiquated ten years ago. 

The Fed has been moving toward a new-age policy framework. It has proceeded to this new approach gradually over the past decade. This slower pace toward change seemed appropriate, until now. 

It is clear that policy has failed to unwind the deep scars of the GFC. The potential consequences could be a decade of persistent volatility and negative shocks. 

This crisis has unequivocally evinced that we need someone that can think-up big ideas, find germane solutions, produce fitting policy strategies, and articulate convincingly that a new direction is needed. 

Will we find our 21st-century Keynes or Friedman? Hopefully we will. Unfortunately I can’t think of anyone doing this type of work, at the level that is needed to achieve the aforementioned objectives. 

Economic and political systems have transformed massively over the past several decades. Economic, political, and geopolitical risks abound. It doesn’t look good. 

I’m getting more and more bearish on a structural investment horizon. And staying negative cyclically amid the many uncertainties and problems I see for the future. 

Oh Ms. Keynes, where are you?