@jake,

The integrated view is that recessions are caused by both. The further and deeper, systemically observant view is that there is an underlying cause that continues to be in play. Smaller recessions occur due to less significant circumstances like poor investment decisions and disruptive events like oil embargos, great ones/depressions are caused by more significant factors like long term mal-investment like what happened in the 20’s, or derivative madness unleashed by the mistaken belief that general equilibrium was reality and so…so what? and money as debt being idiotically marketed to everyone and their dog’s uncle like what happened from the turn of the millennium until 2008.

Now before someone accuses me of being an Austrian (the integrative viewpoint recognizes they have some legitimate points) their’s remains a surface view as much as any other current orthodoxy. If the trend of modern economies has been capital and technical appreciation (and the additional costs of same) for several centuries and the easiest way to reduce costs and to profit is to squeeze and reduce labor costs/individual incomes then the ratio of the rate of flow of total costs/minimal prices exceeding the rate of flow of total individual incomes…..is the likely underlying cause of every fluctuation in the business cycle. And the dual policies of a proactively abundant and ongoing dividend to the individual and a reciprocally gifted discount to prices at the end of the economic cycle at retail sale, first to the consumer and then back to the merchant who gave the discount, would tremendously stabilize the entire system….especially as AI increasingly erodes aggregate effective demand.

What I’m saying is that Wisdomics/Gracenomics/Social Credit is the best integration of the aspects of capitalism and socialism, the best integration of Disequilibrium Theory and MMT.