ABSTRACT
So far we have not been able to point at any stabilizing mechanisms in the economic system that unquestionably will prevent a recession from escalating into a depression. Since the state has been kept at a minimum so far we can safely conclude that when market forces are unleashed to care for macroeconomic stability in a monetary production economy, it is very likely that they will throw the economy into a spiral of violent instability. This is not a very reassuring conclusion. It is time to ask what the state can do if given an active part instead of the passive night watchman’s role it has played so far.
