This paper demonstrates how a 'modest' financial shock can trigger a deep recession. We suggest that two factors can help generate it. The first is that the economy has accumulated a moderately high level of private debt by the time the adverse shock occurs. The second factor is when monetary policy, set under discretion, is restricted by the zero lower bound. These factors can result in a sharp contraction in output. Perhaps surprisingly, we use a standard DSGE model with financial frictions along the lines of Jermann and Quadrini (2012) to demonstrate this result and so do not need to rely on dysfunctional interbank markets.

Within the literature, there has been growing number of studies on robotic 3D printing of clay-based materials. Building upon this foundation and with the aim of improving environmental and structural performance of 3D printed blocks, this paper proposes a material mixture for robotic clay printing, particularly for remote settlements. Exploring three different mixtures of clay and algae for the base material, the paper particularly investigates the relations between the percentage of algae in the mixture and the resulted structural integrity of printed blocks by the UR10 robot. The printed blocks with different algae percentages are compared for their shrinkage rate, fissure sizes and deformation by evidence collected through photography and 3D scanning. The paper presents the initial outcomes of an ongoing research, highlights the positive effects of algae in the mixture for structural performance of the blocks. The proposed algae-based high-performance clay-based materials are designed to generate lower CO2 emissions as well. Adapting higher and collaborative construction technologies, the proposed material mixture and the outcome of the research would inform upgrading clay-based constructions in indigenous communities and moves towards a novel digital culture in remote societies.