Earlier I called the period 1981-2007 “Keynesian years“. Deregulation, liberalisation and privatisation released huge flows of money looking for investment opportunities. Investors threw darts all over, and if some missed then they didn’t mind since some hit. Still, the outcome of this was only modest growth and employment. Nothing really huge, even a productivity slowdown. Now we are re-regulating again, and we face high unemployment. My suggestion for a solution is in the books DRGTPE and CSBH – see the About page – and an element are National Investment Banks.
Paul Krugman in his column A permanent slump ? of November 17 2013 refers to Larry Summers who at the IMF annual research conference apparently made the same diagnosis of 1981-2007.
But without the solution of DRGTPE, CSBH and those investment banks. It is a confirmation, though only a partial one. Facing a permanent slump without a solution is rather depressing.