QE, Parallel Universes and the Problem with Economic Growth

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QE, Parallel Universes and the Problem with Economic Growth via Franklin Templeton U.S. Beyond Bulls and Bears Blog

What do quantum mechanics and the theory of relativity have to do with global central bank policy? Years of aggressive central bank policies haven’t resulted in the type of accelerated global growth one might expect, so Brooks Ritchey, Senior Managing Director at K2 Advisors, Franklin Templeton Solutions, wonders if there is an alternate universe where that is in fact the case. He breaks down the role of monetary and fiscal policy in generating growth, and what investors need to think about when such policies aren’t delivering it.

J. Brooks Ritchey

Senior Managing Director at K2 Advisors, Franklin Templeton Solutions

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The current and prevalent view among some modern theoretical physicists is that our universe is not the only universe, but rather there are many parallel or multi-verses that likely exist alongside or in tandem to ours. In the book The Hidden Reality: Parallel Universes and the Deep Laws of the Cosmos, author and physicist Brian Greene makes a compelling case for this remarkable possibility. Greene describes that “the mathematics underlying quantum mechanics … suggests that all possible outcomes happen, each inhabiting its own separate universe. If a quantum calculation predicts that a particle might be here, or it might be there, then in one universe it is here and in another it is there. And in each such universe, there’s a copy of you witnessing one or the other outcome, thinking—incorrectly—that your reality is the only reality. When you realize that quantum mechanics underlies all physical processes, from the fusing of atoms in the sun to the neural firings that constitute the stuff of thought, the far-reaching implications of the proposal become apparent. It says that there’s no such thing as a road untraveled.”

Bizarre. Greene goes on to describe that in addition to quantum theory, cosmological theory supports this freaky notion as well.

So what purpose the Cliff Notes lesson in theoretical quantum physics? It suggests that there could be a universe,