As you know, I\’m not an economist: as you may also have gathered from what I write, I\’m much more interested in micro-economic factors than I am in macro-
Put those two things together and there\’s rather large gaps in what I do know about macro. For example, about the business cycle, the observation that we get expansions and contractions.
Doesn\’t one school of though (Austrian perhaps?) think that it\’s the build up of stocks and inventories and then the slashing of production to ease them that causes (or perhaps makes worse) the downsides of the business cycle?
But if everyone is using just in time delivery, so that there are no (or few) stocks and inventories in the system, then this won\’t happen any more?
Anyone, umm, actually know?