Sometimes I think you should stop reading my blog and just read Steve Randy Waldman's Interfluidity instead.
His last two articles, like nearly everything else he writes, are full of brilliant insights.
In "Information is stimulus", he answers Paul Krugman's (and my) question about asymmetry clearly and convincingly, making a thoroughly true case for certainty as a source of economic strength.
In "Vanilla afterthoughts", he neatly clarifies the argument for vanilla financial products while providing an entirely new insight into its public choice consequences.
I have noticed several times that he seems to be thinking more or less what I want to think, but is about three steps further ahead. Maybe that's because he used to be a Java programmer before taking up economics. Whereas I...used to be a Java programmer before taking up economics.
Hoping to see Steve writing a bit more in future, as he's been quiet this summer.
I'll ask you this question that I was going to ask Steve:
From the perspective of Individual Businesses and Agents, isn't recalculation always the same?
It's true that decisions might become tougher in a downturn, but I don't see a real difference in the perspective. What I do see is the fact that more businesses are actively addressing serious business problems, but that's an increase in the number of businesses in trouble, not a difference in how businesses deal with problems. At any one point in time, some businesses are facing very tough conditions.
Don the libertarian Democrat