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Sarmad

10/25/08 9:12 PM

#70118 RE: Professor MD #70117

well professor, do you think we'll get a world-wide depression ? Or will growth continue without a long interruption ? My understanding is that severe reduction in economic activity occurs when there are surplus goods in inventory, then production is reduced until inventories are depleted.

With just-in-time manufacturing, excess inventory does not have a chance to accumulate for very long. So on what basis do learned people talk about prolonged recession or depression ?