The depression may not be “Great”, but it has certainly been “Prolonged”. And like many things, good or bad, that persist, people “get used” to it!
And there are those, like the BIS, who think that deepening the depression is worth it if it means reducing the risk of another financial crisis! The world´s major central banks have certainly caused a lot of damage by tightening money in the face of imaginary inflation dangers, but at least they are shrugging off the BIS “recommendations”.
The charts illustrate how “tight money” has shaped the “Prolonged Depression”, and there´s no indication that that state of affairs is about to change (just read some of the “excited” comments on the latest jobs report). It´s human nature: over time it will just become the “normal state of affairs”, or the “new normal”, which some spoilers insist in calling the “Great Stagnation”! [Note: the trends start in 1992]
Update: Couldn´t resist this one:
Two of the world’s most powerful women of finance sat down for a lengthy discussion Wednesday on the future of monetary policy in a post-crisis world: U.S. Federal Reserve Chairwoman Janet Yellen and International Monetary Fund Managing Director Christine Lagarde. Before a veritable who’s-who in international economics packing the IMF’s largest conference hall, the two covered all the hottest topics in debate among the world’s central bankers, financiers and economists.
The full unedited transcript of the Q&A, courtesy of Federal News Service.