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Over the years, there are always paradigm shifts where environments change drastically. The transition from one era to another can shock people, as seen in the shift from the 1920s to the 1930s. The easing of monetary policy and quantitative easing have been long-standing practices, but people tend to extrapolate past events, leading to surprises. It is important to look at history from a longer-term perspective to understand these shifts. The FED made a mistake by assuming the current cycle is normal and that increasing growth and lowering unemployment would lead to inflation.
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