Mark Thoma has posted some interesting comments on whether depressions/ recessions are necessary and/ or ultimately good things. His post argues around ideas put forward in a recent Prospect article. Thoma says:
Chris Hayes takes up a notion I've never been very fond of, that recessions are necessary and healthy since they clear out inefficient firms, and spur the development of new innovation during the recovery phase.
Thoma goes on to say this is largely crap. Not sure the Austrians would agree with Thoma's conclusions, but despite being rather Krugmanian it's persuasive.
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