forget about tomorrow, just steal away into the night
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What Is Happening to the UK
Richard Williamson wants an answer Back in November, Karl Smith made the clearest statement I have ever read of the New Keynesian explanation of a recession: I can’t hammer this home enough. A recession is not when something bad happens. A recession is not when people are poor. A recession is when markets fail to clear. We have workers without factories and factories without workers. We have cars without drivers and drivers without cars. We have homes without families and families without their own home. Prices clear markets. If there is a recession, something is wrong with prices. Right now, unemployment remains ... (full story)