For insight into how to frame the real economy slowdown amid a gangbusters revival in the financial economy, Real Vision’s Ed Harrison recommended Hyman Minsky’s “two-price model” during today’s Daily Briefing.
The Minsky model essentially says there are two price systems in the world: one based on goods and services (price plus markup), and another based on prospective income streams (asset prices). Harrison pointed out that these are two totally different systems and they don’t have an interest rate that puts them in alignment at any one time.
What’s good for one system may not