I Fear Stagflation and Price Controls Are Coming

Ive never seen much merit in Real Business Cycle theory.  Ive long accepted the standard Keynesian view that high unemployment is a grave evil not an optimal response to adverse conditions and that recessions are almost entirely caused by declines in Aggregate Demand.  The Great Depression was not a Great Vacation; it was a disaster caused by the fatal combination of nominal wage rigidity and falling Aggregate Demand.  Yes, Aggregate Supply matters too; indeed, Aggregate Supply is virtually...