The former chief economist of the ECB is telling us that in times of regime shift, uncertainty is so high that it is just impossible to form rational expectations / Otmar Issing, Project Syndicate, Jul 16, 2021/.
Absolutely not, because we can capitalize on Heisenberg’s uncertainty principle. It means that we cannot predict all elements of the movements of the particles, in our case of money and inflation, but we can predict the probability of all of the events.
Firstly, it is most likely that we will bump into a major financial upheaval in the coming months or years due to the huge QE programs of the major central banks and the runaway public debts of the G7 countries.
Secondly, it seems to be highly unlikely that we will suffer again a period of long stagflation in the global economy because of the ongoing technological revolutions that result in higher productivity and lower prices.
Thirdly, alone digital transition constantly lowers prices across the board. It I also true that up till now we have been failing to measure it properly.
We got probability instead of certainty in the global quantum world to make rational decisions.
Governor Matolcsy, MNB, the Central Bank of Hungary