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Arthur Okun focused so much on
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and of the kind that Jim Tobin emphasized
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when he spoke of all those Harberger triangles filling an Okun gap.
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And [they] are not susceptible to the critique that
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what you lose on the swings you gain on the swerves
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that's associated with the more conventional view of cyclical fluctuations.
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It should be clear, from what I have said, where I am going.
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My suggestion is really, to echo Ben Bernanke's suggestion,
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that the destruction of financial intermediation capital
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should be thought of
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as reducing the economy's potential to generate output and,
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in that process, making people poorer