Part of the expansion of investment during the response period will be malinvestment and over-investment. As the malinvestments are discovered and corrected, the production structure will shorten, productivity will decline, and the aggregate data picks up a negative productivity shock.
Just as corporate over-investment triggered the 1997 crisis, Asia's excessive reliance on global demand for its exports, especially electronics, plunged some countries last year into their deepest recession on record.
Further, the business judgment rule, under which judges do not second-guess managerial mistakes, puts the full panoply of agency costs -- such as over-expansion, over-investment, and reluctance to take on profitable but uncomfortable risks -- beyond any direct legal inquiry.
That's not only to do with breaking the fourth wall, an accomplishment dubiously arrived at with Redgrave's sternly spoken "no tongues," followed by a "you be silent" to the crowd lest any of us giggle at Prospero's over-investment in Miranda and Ferdinand's locked lips.