The Prof G Pod with Scott Galloway Are the Central Banks Getting it Wrong? — with Danny Blanchflower
13 snips
Sep 29, 2022 
Danny Blanchflower, a Dartmouth College economics professor and expert in monetary policy, shares his insights on the U.S. economy and the looming recession. He critiques the Fed's approach, labeling it 'guessonomics.' The conversation touches on the risks of rising interest rates and the overconfidence of central banks. Blanchflower also discusses the history and significance of unionization on wage growth, while providing a thought-provoking look at competition and diversification in both business and personal finance.
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Recession Prediction
- Danny Blanchflower believes the US economy is heading towards a recession, similar to 2008, due to the Fed's interest rate hikes.
- He criticizes the Fed's certainty, highlighting the unique economic situation with similarities to past crises like the Great Depression.
Inflation and Recession
- Historically, aggressive interest rate hikes by the Fed have led to recessions.
- Blanchflower argues that inflation is self-correcting and that the focus should be on mitigating the negative impact of a recession on well-being.
Self-Correcting Inflation
- Blanchflower believes the Fed's aggressive rate hikes are a mistake, as inflation is likely self-correcting due to lower energy and commodity prices.
- He emphasizes the deflationary impact of a surging dollar, further supporting his view.
