&gt; Such a scenario is generally best resolved by solving the cause of the shock and doing everything to let the market clear. Most of the time this will be temporary and conditions will resolve, if not at the speed at which makes everything happy.<p>Maybe waiting would work, but that&#x27;s no reason not to intervene if we think that intervention can bring us faster growth (even if this will only be temporarily faster growth until we &quot;catch up&quot; to currently unused production capacity). If consumption stimulus will help recovery (and I think it will, on Keynesian grounds) we should do it.