SamuelRSmith on 16 June 2009
Yeah, I realised that when I searched it. :)
EDIT: After doing a quick read up of it, I don't really see how this proves or disproves keynesian model in anyway. It's simply where both ad and as are in decline, but as is in decline faster than what ad is (or as is decreasing and ad isn't moving). This can be down to anything that raises the costs to firms (as greater costs = lower supply), including commodity prices.
In some ways, the fact that the recession happened when it did is a good thing, I mean if it happened a year or so later, the price of oil would have been incredibly high, and we could have also seen stagflation on top of everything else that was going on.
