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Does a Decline in “Aggregate Demand” Cause a Recession?

Keynesian orthodoxy claims that the cause of recessions is a decline in so-called aggregate demand. Besides confusing cause-and-effect, Keynesians don't understand that downturns are the result of malinvestments made during the boom because of central bank interference in the economy.

Source: Mises Institute

Original URL: https://mises.org/mises-wire/does-decline-aggregate-demand-cause-recession