Why the US Economy Has Avoided a Recession So Far
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Last year, economists predicted a recession in 2023, but it did not occur. The author of an article on Econlib argues that economics has no method for predicting turning points in the business cycle. The article provides three reasons for why a recession did not occur: First, the wrong Phillips Curve was used to make predictions. Second, immigration helped moderate wage growth, which contributed to economic stability. And third, the Federal Reserve implemented gradualism in slowing NGDP (Nominal Gross Domestic Product) growth. The author acknowledges that the US has not achieved a soft landing and expresses concern about the Fed's commitment to 2% inflation.
Despite the concerns raised by some economists, officials at the Federal Open Market Committee (FOMC) are growing increasingly optim...
#newstr #Recession #Economics #PhillipsCurve #Immigration #FederalReserve