For example, weak demand leads to unemployment and if this becomes prolonged, workers’ human capital can diminish, which in turn reduces the potential output of the economy (Blanchard and Summers, 1986 and Blanchard, Cerrutti and Summers, 2015).
Ewart S Williams: Upgrading financial regulation and supervision – a multi-dimensional challenge Regulators Round Table Presentation by Mr Ewart S Williams, Governor of the Central Bank of Trinidad and Tobago, at the Unit Trust Corporation Investor Conference 2011, Port-of-Spain, 8–9 September 2011. *  *  *  The last few years have been a difficult period for regulators all over the world.