Rogoff: >Isn't it possible, then, that rather than causing a Great Depression, >significant shrinkage of the financial sector, particularly if facilitated by >an improved regulatory structure, might actually enhance efficiency and >growth?<
a cut-back in such wasteful investment in the FIRE sector does help promote supply-side growth in the long-term (as defined by the orthodox, in real GDP per capita terms) but there seem to be short-term transition costs. We might have our Depression and long-term growth too. A shake-out. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
