Paul Krugman says: > It's true that classical economics says that we should let market forces do their work; but classical economics also says that severe recessions can't happen.<
that's not true. Following their laissez-faire tilt, classical economics professed a belief in _karma_: recessions are punishment for having messed with Mother Nature (i.e., markets), for example getting interest rates below their "natural" levels. What the classicals missed was the possibility that recessions could become self-reinforcing, so that an economy could get stuck on the floor for a long time. They missed the phenomenon of depression. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
