Correct. And obvious. Which is why even the existence of this line of questioning bothers me. Economic Aggregates only tell us what should happen without ‘error’ in the equilibria. So what was the error? Banks. That’s why we’re going to eventually see nationalization of sav/inv..
Source date (UTC): 2020-10-27 17:46:47 UTC
Original post: https://twitter.com/i/web/status/1321146338998947841
Reply addressees: @curri_tibio @BrankoMilan @fsaraceno
Replying to: https://twitter.com/i/web/status/1321131847259164673
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