Schizophrenia is “a long-term mental disorder of a type involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.”
In general use it is referred to as “a mentality or approach characterized by inconsistent or contradictory elements.” It is also often used to refer to someone with a split personality.
It is a truly severe mental disorder that is difficult to treat. And it seems to be a perfect description of today’s economy.
Thursday: Don’t Raise Rates This Year
As a recent example, consider last week’s announcement by the International Monetary Fund (IMF) that it was lowering its growth estimate for the U.S. economy from 3.1% to 2.5%. Both estimates are well below the 3.3% annual growth rate that was the norm before the financial crisis, but even 2.5% is average the average we’ve seen throughout the Obama presidency.