Financial shocks can lead to low investment and capital stock declines after a crisis. A study shows that these shocks create "capital unemployment," where unused capital is high. This causes the economy to focus on using existing capital instead of investing in new capital. The model used in the study can explain why investment and output stayed low during the Great Recession. Financial shocks play a big role in economic fluctuations, accounting for 33% of output changes. The study also explains why capital moves in line with the economy's ups and downs.