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person > George Akerlof
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According to recent studies, in most cases spending cuts have a tendency to weaken economies.
Much of modern economic and financial theory is based on the assumption that people are rational, says author.
The drop in economic confidence was sharper in July 2011 than it was in 2008, due to fears of a US debt default.
The US' biggest economic problem is unemployment, yet the government's approach is to focus on deficits instead.
Japan could have mitigated financial fallout with proper catastrophe insurance, such as GDP "trill" bonds.
By 2010, US farm prices fell only 5 per cent from their 2008 peak, compared with 37 per cent for home prices.
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