Wednesday, August 25, 2010

Regime uncertainty

Robert Higgs explains:
"Regime uncertainty has gained increasing recognition as the current economic troubles have persisted with little or no improvement since the economy reached a cyclical trough early in 2009. As described in my 1997 paper, regime uncertainty pertains to ..."
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Comment: If you meet someone who talks about the Great Depression or the current crisis or the stimulus program, ask him whether he knows about Higgs' thesis of regime uncertainty. Higgs' concept of regime uncertainty is the most relevant explanation why the Great Depression lasted so long and for that matter it is of utmost importance for our present situation.

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