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Over the years, there are always paradigm shifts, where environments change drastically. The transition from one period to another can shock people, as seen from the shift between the 1920s and 1930s. Long-standing practices, such as easing monetary policy and quantitative easing, can lead to surprises when people extrapolate past trends. By looking at history from a longer perspective, one can understand these shifts better. The FED may have made a mistake by assuming a normal cycle would result in inflation with increased growth and lowered unemployment.
