Re: Re: Re: Re: Re: Re: Re: Re: the downturn

[Brad DeLong <delong@xxxxxxxxxxxxxxxxx>]

> > > > ...  One of the reasons why
> > > > those downturns go fast once they start is for the
> > > > oldest of Keynesian reasons, one rapidly being
> > > > purged from the new wave textbooks following
> > > > Mankiw, the multiplier effect.
>
> I wrote:
> > > perhaps more importantly, they've purged the accelerator effect
> > > and the debt-deflation theory of great depressions.
>
> Brad writes:
> > We have? Even Mankiw (Intermediate) has a version of debt-deflation
> > (although I find his discussion hard to follow) focusing on the
> > real interest rate...
>
> You're right about this (cf. pp. 300-1 of the 4th edition). But it
> receives only a minor emphasis,

You're right...


Brad DeLong
--
J. Bradford DeLong
Professor of Economics, U.C. Berkeley
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