Goldilocks is now called “confirmation bias.”
We can fall in love with a narrative to such an extent that we blind ourselves to mounting evidence against it — a concept known in the literature as “confirmation bias.”
One recent phrase for this narrative, rapidly gaining currency, is “Immaculate Disinflation.” Somehow, inflation could come down without inflicting pain.
An older name for this tale is Goldilocks.
Nothing proves that the economy will have a Goldilocks ending for now. But this story will stay standing unless and until something comes along to show that it’s a just fairytale.
John Authers Bloomberg 5 juni 2023
Goldilocks Economy Is a Fairy Tale Too Good to Be True
James Mackintosh WSJ 8 February 2023
https://englundmacro.blogspot.com/2023/02/goldilocks-economy-is-fairy-tale-too.html
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