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> There's always been a high degree of state intervention (in fact the term 'intervention' is misleading). Presumably to prevent things becoming even more unhinged a great deal more state intervention is to be expected. On the other hand, I am starting to wonder more and more if elites haven't started believing a lot of their own ideology (one gets this impression reading business journals these days) and genuinely think things will correct themselves--much as a badly designed bridge 'corrects' itself in the process of collapse.
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The superstition of equilibrium is deep in the OS of the economics profession:
“This notion that the economy is self-stabilising is usually right but it is wrong a few times a century. And this is one of those times . . . there’s a need for extraordinary public action at those times.” http://www.ft.com/cms/s/0/5d8b5e18-0c14-11de-b87d-0000779fd2ac.html
To paraphrase Freddie N., as long as there's grammar, equilibrium will be a security blanket for the profession. Nonlinearities creep em out....
Ian