Depression Economics

Depression Economics
The inversion of the laws of economic policy during a depression.

Paul Krugman defined depression economics thus:

A state of affairs like that of the 1930s in which the usual tools of economic policy – above all, the Federal Reserve’s ability to pump up the economy by cutting interest rates – have lost all traction. Whendepression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.


Dictionary of unconsidered lexicographical trifles. 2014.

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