Paul Krugman | Is The Economy Self-Correcting? (Wonkish) – New York Times (blog)

Paul Krugman | Is The Economy Self-Correcting? (Wonkish) – New York Times (blog)
Paul Krugman | Is The Economy Self-Correcting? (Wonkish)New York Times (blog)How is the self-correction of an economy to its long-run equilibrium supposed to work? In textbook analysis, the story is that falling prices raise the real money supply, pushing down interest rates, and hence restoring employment. So how rapidly would …
Paul Krugman | Is The Economy Self-Correcting? (Wonkish) – New York Times (blog)