A study of past recessions
http://www.nytimes.com/interactive/2009/01/26/business/economy/20090126-recessions-graphic.html A very informative link which studies all the major recession(in US) since the great depression! The theory of keynes's (keynesian economics) in combating recession which supports the circulation of money by goverment (bu buying or reducing rates) was titled not pragmatic as it virtually had no effect during the recession in 1960 till the economy recovered, was again endorsed in 1980 when Reagan reduced the regulations and introduced tax cut which increased the spending and it(increased spending) led to recovery the very next year.(In 1960 it had taken a lot of time to have effect). The credit crunch in 1990 caused by the tight monetary policy (to combat the rising inflation) was again restored when Alan(then fed Chairman) cut the federal funds rate several times(sometimes boldly as Glen Hubbard puts it :) ).It was the same story(in combating) in 2001 when GDP falls though this tim...