Reply To: Full Employment, Cycles, Etc


Professor Herbener,

Why is it that certain sectors get more artificially bloated than others during an inflationary boom?

For example, why did labor have to come down in certain sectors to facilitate the movement of workers into the “correct one” during the Depression in order to have a correction?

Is the manufacturing sector more sensitive to business cycles than others?

Are there any good articles or lectures that go in depth in showing how recessions correct the problems caused by the artificially high cheap credit?

Thank you!