Edward Lotterman
Edward Lotterman
Many people think that the U.S. economy is in terrible shape – regardless of highly positive numbers for unemployment, growth in jobs and in the value of output of goods and services. Even though consumer prices increased only 3% over the last 12 months, many people will tell you that inflation is the worst it has been in decades. Economists are stumped. However, that may be positive on two counts.
First, the current situation may quash economic theories based on the assumption that the general public is not only highly informed about economic conditions, but that collectively, they accurately can foresee what government will do, what the effects of such policies will be and thus how to best protect their own positions as circumstances evolve. That “rational expectations” theory was all the rage in…
