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this post was submitted on 30 Dec 2024
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I mean, it's a fair question for a political leader to ask his economic advisors, no? Pretty sure Obama would have asked his advisors the same question back in 2009.
The issue, by the way, is a lot less settled than a lot of people think. Macroeconomics still seems to do a surprisingly bad job at understanding the links between inflation, interest rates, and economic activity, beyond giving some rough guidelines.
Obama would have been president for one year in 2009 and I still would hope he understood the problem with deflation.
Xi Jinping has been in power for over 12 years now.
Fears about persistent deflation in China are relatively recent. It's come up now because of the live question of whether the government should engage in a big fiscal stimulus (the same debate the US went through in 2009).
This is because Macroeconomics isn't a science. Its gamblers attempting to create rules on "how to win at gambling" when everyone knows the only winner in gambling is the house.