> The “supply won’t help” and the “supply will lead to a wealth shock and a production shock because rents will collapse” are both extreme errors in the opposite direction from reality. They are both wrong. Don’t believe either. Especially don’t believe both at the same time.
That reminds me of the people, common in the 2010s, that argued that inflation would permanently be below target and that central banks 'printing' money won't make a difference:
If that really were the case, your central bank, say the bank of Japancould just one-by-one buy up all the assets in the world at no real cost to Japan.
> The “supply won’t help” and the “supply will lead to a wealth shock and a production shock because rents will collapse” are both extreme errors in the opposite direction from reality. They are both wrong. Don’t believe either. Especially don’t believe both at the same time.
That reminds me of the people, common in the 2010s, that argued that inflation would permanently be below target and that central banks 'printing' money won't make a difference:
If that really were the case, your central bank, say the bank of Japancould just one-by-one buy up all the assets in the world at no real cost to Japan.
You see fewer of those people nowadays.