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Saltwater economists in the New Keynesian school — which sort of included me, for instance in my liquidity-trap writing — were doing intertemporal-maximization models that in effect conceded a lot of ground to freshwater styles of analysis, but with distortions — monopolistic competition and sticky prices — that made room for demand failures as a cause of recession.
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In some sense the Keynesian theory of underconsumption that is, inadequate consumer demand as a cause of recessions was presaged by mercantilist contributions.
Swings in stockbuilding were a main cause of recessions in the early 1990s in both America and Britain, accounting for three-fifths of the drop in America's GDP.The most recent stock figures point to slower growth ahead.
We will get further shrinking of unwanted inventories, which is the immediate cause of recessions.
Fourth, we will get further shrinking of unwanted inventories the immediate cause of recessions.
That increase in government deficit spending offsets the decreased private economic demand that is the root cause of recessions.
Eliminate potential causes of recession (piercing, smoking, traumatic toothbrushing) 3.
In economics, unlike in chemistry or physics, many basic questions, such as the causes of recessions and stock market booms, remain matters of dispute.
It is true that the answers to many "big picture" macroeconomic questions — like the causes of recessions or the determinants of growth — remain elusive.
Could it be that unaffordable health care is the ultimate cause of the recession?
A lot of American people actually believe that the deficit is the cause of the recession.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com