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Yet the correct test is not whether a bubble can be deflated without some loss of output.
When inflation jumped, workers quickly demanded bigger pay rises and so the loss of output was all the greater.
Adding up the annual loss of output, America's total loss over the 1930s still exceeds Japan's—so far.
The loss of output and earnings associated with high unemployment also reduces government revenues and increases spending, thereby leading to larger deficits and higher levels of debt.
The growth was from a lower base, though, and the cumulative loss of output to the trough in the third quarter was 6.2% rather than 6.0%.
Going back to the left-hand chart, that would imply a further leftward shift in the demand curve and hence a larger loss of output.
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For the optimal price system, we have (u_{text{OL}}^pm = -0.07), thus plighting under-proportional loss of outputs when reducing inputs.
More than a dozen emerging economies have restructured their sovereign debt in the past decade without huge losses of output and without paying enormous penalties in exclusion from capital markets or higher spreads.
The question that needs to be asked is whether the future gains in potential output and growth that would result from expansionary fiscal policy today would outweigh any future losses of output and growth caused by the repayment of the government's additional debt.
China did this during the Asian economic crisis ten years ago, and maintained solid growth while its neighbors -- Indonesia, South Korea, Thailand and others -- suffered serious losses of output and employment and watched tens of millions sink into poverty.
By assessing the abundance of secreted reporters, we measure Pmp22 transcriptional activity and enable a reliable loss-of-signal output configuration assay in a 4 μL volume.
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