Types of "General Gluts": Fisher, Wicksell, Bagehot

Last time we talked about Walras's Law--how excess demands and excess supplies across all the markets in the economy have to add up to zero. We learned that a depression--large excess supply in the markets for goods and services accompanied by low capacity utilization and high unemployment--is accompanied by an equal amount of excess demand somewhere in financial markets. And we learned that to eliminate one is to eliminate the other: boost demand for goods and services and you will find...