At a metaphysical level, there exists only one choice - between truth and falsehood, between light and darkness, between good and evil etc. Hiding from the problem is what children do. Working together is what adults do. Shooting the messenger is what ...... I read last year that all GDP numbers were suddenly revised downwards for many years. I read that numbers will be seasonally adjusted twice now. Both made me roar with laughter. I read someone once said something like - when it's serious, one has to lie. So what would it mean when someone lies about telling lies? Last I checked - mathematically speaking - two lies don't make a truth! Perhaps the economics world is different. Did we ever leave the telling scary stories around the campfire looking for a (evil spirit) scapegoat stage? IMO guilt can't save someone from the person who projects it. Someone really smart once said something like: The same thinking that got us into a problem will not get us out. Face the problem or face the punishment - time to choose!
Yes. It's pretty simple. Using your water metaphor, compare it to "the cross-sectional area of a pipe times the speed of the water flowing through it equals the rate of water flow." Keynesianism is like nuclear weapons, we'd all be better if they hadn't been invented. https://research.stlouisfed.org/fred2/ is the best source of charts and such.
science is the same no matter what people do. Economics is dependent on people behaving as they should or ususally do or did last time. That's like, most of the time the earth revolves around the sun.
We all want something to happen fast. High levels of personal and governement indebtedness slows economies down. Dealmaker just posted a nice video on this. Some bumps and volatility in a downtrend of growth and inflation may make it exciting but it might be a long slow crawl to the bottom for all economies , some leading others down. FED and Other CB actions will be catalyst for variance in the trend of low growth and inflation but reversal of trend with current monetary and fiscal policy seems unlikely. Watch Dealmakers video. The speaker explains historically that devaluation is not inflationary. (I would say of developed economies but probably not EM) 10 year Bund at +4.8 bp. I suppose the yield cant go lower than the ECB negative deposit rate + some term risk premium for inflation.