Fighting Crises

Medicines are often worse than the disease. The treatment of a crisis consists in entrepreneurs eliminating the mistakes made during the boom, relying on real resources. Intervention in this process can in no way help overcome the crisis. Nevertheless, states and central banks constantly engage in this. The classic example is the same Great Depression, when Roosevelt managed to stretch the crisis for 12 years and actually arranged two crises instead of one. It seems that the current crisis will be the second such classic example.