The Federal Reserve prevented a full depression equivalent to the 1930s by intervening in 2008-2010 and during COVID, but by avoiding the pain of deep recession, governments also avoided the recovery and deleveraging that would normally follow, settling instead for 'circular stagnation' with chronic dependence on monetary and fiscal support.
causalpending
Speaker
Victor JvetsayEvidence Quote
“Federal Reserve prevented us from having the same or plunging to the same depths of despair... But because we've avoided it, we also avoided recoveries. So in other words, we've settled for a circular stagnation.”
Created: 8/11/2026, 6:33:00 AM
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