Deflation is not an issue if accompanied by growth in TFP. It&#x27;s acknowledged that the period from 1874-1896 was one such event. As for banking panics, they were always particularly bad in the United States because of geographic limitations, specific bondholding requirements and other restrictions.<p>Theory of the firm has many variants. Coasian, Alchian, evolutionary, etc. Again, what type of neoclassicism? What <i>is</i> neoliberalism, anyway? [1] It&#x27;s used as a snarl term rather than a particular set of ideological convictions. I&#x27;ve seen it used to describe various forms of economic liberalism, but also more esoteric Foucaltian analyses.<p>The Golden Age of Capitalism was still a time of imperialism (Truman Doctrine in effect), one of seven times less regulation than today (as measured by size of the Federal Register) and all sorts of other statuses that are nowadays attributed as being unique to neoliberalism. There was no sudden &quot;jump&quot; in the 1970s, it&#x27;s been an ongoing process since mercantilism.<p>[1] <a href="http:&#x2F;&#x2F;folk.uio.no&#x2F;daget&#x2F;neoliberalism.pdf" rel="nofollow">http:&#x2F;&#x2F;folk.uio.no&#x2F;daget&#x2F;neoliberalism.pdf</a>