Jan 13, 2018

Charlie Munger on how the economics profession has been flummoxed the past 20 years

The whole situation is quite weird. Who would’ve guessed that you could have 20 years of real interest rates at zero [in] a lot of different advanced nations? Who would have guessed we could print as much money as we did and have as low inflation as we did? My attitude towards the economic situation has always been one of skepticism. I don’t think these people know what the hell they are doing…They’ve been confident in various formulas, but economics is not physics. The same formula that works in one decade doesn’t work in the next. Economics is a difficult subject. And a lot of overconfidence has been removed from the economics profession over the past 20 years. They’ve been really surprised.

~ Charlie Munger, CNBC interview, January 10, 2018

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