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

[Jim Devine]

At 01:32 PM 12/4/00 -0500, you wrote:
>Jim,
>       Let's keep in mind that there is a crucial
>difference between a "slowdown" (reduction
>in the rate of still positive growth) and a "recession,"
>actual negative growth.  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.

perhaps more importantly, they've purged the accelerator effect and the 
debt-deflation theory of great depressions.

Jim Devine [EMAIL PROTECTED] &  http://bellarmine.lmu.edu/~jdevine