>>>>... 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
601 Evans Hall, #3880
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