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Post-Keynesians did predict a crisis, on broadly the terms that we actually experienced. They argue that there are adverse side effects to using monetary policy to manage aggregate demand. Although in theory this might be avoidable, post-Keynesians point out that in practice monetary stabilization, even above the zero-bound, seems to engender increasing indebtedness and financial fragility, and to distort activity towards overspecialization in fi...
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