Sunday, 19 January 2014
Why cannot Sinclair Davidson simply admit he was wrong?
Sometime ago Sinclair Davidson made a very silly prediction that Australia would experience Stagflation.
Now just read the article and then take a time to ponder did he get anything right?
Instead of stagflation we in fact got deflation when the terms of trade fell quite a bit. Indeed there were times Real GDP was larger than Nominal GDP in some quarters.
No sign of nominal GDP falling below trend in this article. No sign that this is the reason why unemployment would rise.
Thus when M0nty provokes Davidson into asking why his prediction was so wrong here it was interesting to note Davidson's reaction.
He essentially says he got it right. If we are to take him at his word then that would mean he is patently mad like Kastesy however given his history I think we can merely note he is incapable of saying he got it wrong,badly wrong.
Fortunately those of us that can read know how badly he got it wrong and why he got it so badly wrong!
How ironic the site that gives me more ( many more in fact) pageviews than any other site is Catallaxy