Jim
One possibility to consider here is that it's not possible for the
government to manage effective demand to overcome a protracted crisis and
that the economy left to itself will also suffer protracted depression, not
the sharp V recovery as economic libertarians such as Hayek and Schumpeter
claimed.  Why no V shaped recovery? Debt deflation spirals (Devine,
Krugman), imperfect competition (Preobrazshensky), the very business
consolidations undertaken to reduce capital/output ratios and thereby
restore profitability  compound the unemployment problem in the short to
medium term and thus the problem of effective demand as well (my leading
candidate)?
Lakshmi
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