Recessions are always and everywhere caused by monetary policy

Basil Halperin@BasilHalperin

TLDR: Causality is a property of the map, not of the territory; but some maps are more useful than other ones The Fed should, by default, keep the economy out of recession. Therefore, describing it as ‘the’ cause of recessions is *the most useful way of talking about the world*

Basil Halperin@BasilHalperin

Any time output is below potential, we should think of it as the central bank’s fault If not, pick your poison: do you disagree with #1, #2, or #3?