David McWilliams: The rules of economics have changed. Could someone tell central bankers?
Disruptive technology has rewritten the economic rulebook, but the old manual is still in use
When it comes to financing disruptive technology, lower interest rates are deflationary rather than inflationary.
This week, the column will focus on global economic policy and why central banks – still the most powerful economic institutions in the world – don’t understand how disruptive technology is changing the way our world works.
What if they are stuck in a late 20th-century mindset not sufficiently clued in to the impact of new technology and therefore, as the world worries about an impending recession, they are like old generals, fighting the last war not the new one?