"Now think about the period after the financial crisis. You know, I always like to think of these crises as analogous to a power failure, or analogous to what would happen if all the telephones were shut off for a time. The network would collapse, the connections would go away, and output would of course drop very rapidly. There’d be a set of economists who’d sit around explaining that electricity was only four percent of the economy, and so if you lost eighty percent of electricity you couldn’t possibly have lost more than three percent of the economy, and there’d be people in Minnesota and Chicago and stuff who’d be writing that paper… but it would be stupid. It would be stupid." From the Stagnititis speech.
Yes, Larry. You use network theory, but you have the wrong network. It wasn't the financial that caused the crash, it was the oil network.
ANd, by the way,would Larry tell us which network is causing the secular stags?
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