The Scylla and Charybdis of Modern Money
The words “inflation” and “recession” have inundated our news feed in recent months. Economists and policymakers are always on the lookout for these two forces that threaten the economy in opposing but equally destructive ways.
Imagine that Scylla resembles inflation. Her razor-sharp teeth tear away your purchasing power and consume your wealth. The more she consumes, the more powerful she grows. Charybdis resembles a recession. The whirlpool swallows asset prices, depresses growth, and traps the economy in a downward spiral of unemployment and financial crisis.