 And this government spending needs to be sustained..."

John Maynard Keynes believed that government institutions could stimulate aggregate demand in a crisis.“Keynes showed that if somehow the level of aggregate demand could be triggered, possibly by the government printing currency notes to employ people to dig holes and fill them up, the wages that would be paid out would resuscitate the economy by generating successive rounds of demand through the multiplier process”

Some recessions have been anticipated by the stock market declines.In "Stocks for the Long Run", Siegel mentions that since 1948, ten recessions were preceded by a stock market decline, by a lead time of 0 to 13 months (average 5.7 months), while ten stock market declines of greater than 10% in the Dow Jones Industrial Average were not followed by a recession.