Interesting Economic Theory

According to Tom Stevenson recessions cause transvestism:

In a dramatic volte face, the investment bank put the chance of a US recession at 40pc to 45pc and predicted interest rates would fall from 4.5pc to 3pc next year. Time to dig out those long skirts.

2 thoughts on “Interesting Economic Theory”

  1. It refers to the long-noticed fact that skirt lengths (on ladies) tend to grow longer during recessions and drift upwards during boom times. (Think flappers and the Roaring Twenties.) Whether it is a leading or a lagging indicator I am not sure. But it does make economics interesting.

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