I am reading through a new paper by Steve Keen and was struck by the following data points:
"The downturn in GDP was relatively minor -- from $14.4 trillion at its peak to $13.9 trillion at its lowpoint, a fall of just over half a trillion or 4% of nominal GDP...
The downturn in private aggregate demand was much more severe; from $18,4 trillion at its peak in November 2007 to $11.4 trillion in February 2010, a fall of $6.9 trillion or 38% over 2.3 years."
Now, had I followed through on my promised review of important concepts from Keen's book, your reaction might have been the same as mine. However, as I have been lazy, Irving Fisher's debt deflation theory did not automatically trigger, within the context of Hyman Minsky's financial instability hypothesis. And so here we are.
Oh well, I'll get around to it I guess.
