the deviation of an exchange rate from purchasing power parity, adjusted for per capita income. Endnotes (1) "The General Theory," J. M. Keynes (2) Rajan, "Fault Lines," 2010 (3) CBO, "Trends in the Distribution of Household Income Between 1979 and 2007," 2011; "The Distribution of Household Income an

arch, Cambridge, MA, 2009 (33) Hamilton Project-Brookings, 2013 (34) Goldin and Katz, 2009 (35) Goldin and Katz, 2009 (36) Goldin and Katz, 2009, Rajan, 2010, Hamilton Project-Brookings, 2013 (37) "A Well-Educated Workforce is Key To State Prosperity," Economic Analysis and Research Network, 2014 (3

lities that is diametrically opposite to the Gorton-Metrick view of short term debt as information-insensitive and hence money-like. In Diamond and Rajan's view, short-term investors monitor intensively and discipline management with the threat of a run. Therefore, "stabilization policies, such as ca

a long way from showing that the financial system as a whole refused to lend to clearly profitable new investments. Dell'Ariccia, Detragiache, and Rajan (2008) show that sectors more dependent on external finance fall more during the recession following a financial crisis. But sectors not at all so d