"A premise of virtually everything I studied in graduate school, and virtually everything I taught as a professor of macroeconomics for some years, was that a coherent model had an equilibrium, and if that equilibrium changed, it would move to a new equilibrium. Surely the events of the last few years call that proposition into question? If the world had unfolded forward from 2007 with no policy actions taken, no lending of the last resort, no expansionary monetary policy, no expansionary fiscal policy, I would suggest to you that there is a real possibility that the right approximation would have been an unbounded downward spiral, a possibility ruled out in any textbook model, or almost any model published in a journal in the last several decades. "
Lawrence Summers, speech at the London School of Economics forum on "What should economists and policymakers learn from the financial crisis?", chaired by Prof. Mervyn King, 25 March 2013. http://www2.lse.ac.uk/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/player.aspx?id=1856
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