Tectonic Transformation: Business Cycle and Jolt Policy

tectonic transformation: Something like COVID-19, according to The Japan Times. In 2020, when the pandemic hit and economies around the world went into lockdown, policymakers effectively short-circuited the business cycle without thinking twice. Something big usually has to happen to jolt policy onto a different track. In the U.S. in particular, a blitz of public spending pulled the economy out of the deepest slump on record faster than almost anyone expected and put it on the verge of a boom. But the overall approach the framework in place since President Ronald Reagan and Federal Reserve Chair Paul Volcker steered U.S. economic policy in the 1980s emerged relatively intact. The result could be a tectonic transformation of economic theory and practice. ; The Great Recession that followed the crash of 2008 had already triggered a rethink. (news.financializer.com). As reported in the news.