The mystery of Yglesias
Matty Y has put up a mysterious blog post called "The non-mystery of the recession".
He shows this graph:
And then says "As for the current recession, this just goes to emphasize how non-mysterious everything is"
And that to me is mysterious!
Is he saying the fall in consumption explains the fall in GDP (rather than vice versa or both being caused by a third factor)?
Or is he saying that the current recession is typical of US recessions?
People, the recession we have endured and its aftereffects are anything but non-mysterious.
GDP and consumption usually snap back to trend relatively quickly after a recession in the USA. The current case, where GDP and consumption are moving along a path parallel to but below the original trend is rare and, dare I say it, mysterious.
Either Matty is too deep for me, or Matty doesn't know what the word "mystery" means (or both I guess could be true).