The Recent Economic Crisis - A Microeconomist's View
Two years ago a fire broke out in town. The fire started in a confined area, but the place was full of incendiary material, and given the housing density in town the fire spread rapidly. One way or another, very few buildings remained untouched by the fire. People with long memories said that there hadn’t been a fire like that in our town for eighty years. Fortunately, the fire brigade stepped in quickly, and its rapid action caused the flames to subside so that the damage was limited, although some houses suffered from water damage as a result of the huge (some say, excessive) water quantities used. Time will tell.