if things were intelligently managed, you could keep the bubble inflated at just the right amount to prevent it from popping or inflating further, and never have to deal with the bust.
Two things. First, a bubble that never deflates or pops is not a bubble, it’s sustainable growth.
Second, there is a LOT of empirical evidence that “intelligent management” of economy—which has been practiced since the first half of the XX century to various degrees in many countries—vastly underperforms its promises.
Two things. First, a bubble that never deflates or pops is not a bubble, it’s sustainable growth.
Second, there is a LOT of empirical evidence that “intelligent management” of economy—which has been practiced since the first half of the XX century to various degrees in many countries—vastly underperforms its promises.
Agreed on both points. I’m not endorsing that theory, or related steelmanned versions.