Imagine this scenario.
Your economy hits a rough patch and some people start losing their jobs.
Over several months, the job losses slowly edge higher.
As always, economists start arguing about the meaning of the rising unemployment rate but they can’t agree on its cause.
But then — bang!
Stimulus payments start automatically flowing to households anyway.
The unemployment rate has hit a certain trigger, a real-time indicator that the economy is in recession, long before policymakers would traditionally make that call.
And the payments are already hitting peoples’ bank accounts to alleviate the pain of rising joblessness, and to hopefully reduce the severity of the recession.
And the best part?
It’s occurred without politicians getting involved. People are getting the stimulus payments without having to wait for the government to give the okay.
Does that sound far-fetched?
Well, it’s not.
It’s the brainchild of Claudia Sahm, a former US Federal…