Goldilocks and the Three Bears

L. Randall Wray

Economics Policy Note Archive from Levy Economics Institute

Abstract: Unlike the Papa, Mama, and Baby Bears faced by the storybook Goldilocks, our Goldilocks faced three ferocious grizzlies: a cascading, global financial crisis; global deflation and excess capacity (or insufficient demand); and a domestic fiscal surplus in conjunction with record private deficits.

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