Summary
The present world depression can be explained in terms of the overinvestment theories. and the theory of Keynes. A new element reinforcing the upswing and probably protracting the downswing was, however, added to the economic structure, the political entrepreneur, subject to similar feelings of optimism and pessimism as the entrepreneur operating in real markets. The world economy is in for chronic depression unless international agreement to a certain degree on policies of demand management and lowering interest rates is restored.
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Driehuis, W., Klant, J.J. The nature and causes of the world depression. De Economist 131, 474–497 (1983). https://doi.org/10.1007/BF02109406
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DOI: https://doi.org/10.1007/BF02109406