Jim, I understand that in a slump that the extent to which stimulus works as pump priming may prove to be surprisingly weak.
Dudley Dillard showed this to be in the case of The Great Depression; it is fallacious to think that pump priming effects will be strong in deep slumps. Dillard's interesting position is that weak pump priming effects does not vitiate the theory of the multiplier. You write: "Rather, they know that there are "accelerator effects" (which is something different from mechanistic accelerator models) in which increases in GDP lead to increases in business fixed investment (all else constant, natch)." What could neutralize these effects, in theory? LR
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