| Summers argues that such adjustments imply counterfactually high unemployment rates in earlier years. |
| Suppose it were true, counterfactually, that large pools of wealth systematically earn higher returns than small pools of wealth. |
| This is that, while a time-varying pricing kernel helps generate volatile expected risk premia, it can also give rise to counterfactually volatile interest rates. |
| Just as there may be actual knowledge of what is counterfactually the case, there may be counterfactual knowledge of what is actually the case. |
| But, consider the situation counterfactually. |
| The idea was that event B was counterfactually dependent on event A if and only if the counterfactual Had A not occurred, B would not have occurred was true. |
