Posts tagged 'Debt Cycle'

Economists disagree on some basic facts about America’s weak recovery

Some new economic research argues America’s slow recovery since the financial crisis had nothing to do with household deleveraging or unusually weak business spending. Instead, it can be entirely attributed to changes in demographics, weakness abroad, and fiscal austerity. But does it make sense? Read more

Yes, the early 1990s really were bad

If you remember the early ’90s, other than, I would say, 1928, there was nothing even close. The conditions facing real estate developers in that early ’90 period were almost as bad as the Great Depression of 1929 and far worse than the Great Recession of 2008. Not even close.

— Donald Trump, via Vox

This statement has gotten some (undeserved) criticism. Here’s the Associated Press with a “fact check”: Read more

On the transient necessity of central bank independence

Nowadays, the idea of not having an independent central bank is seen as being a bit backward. One could even say that central bank independence is widely accepted as the optimum set-up for any country’s monetary system, a reflection of its developmental status.

“Independent central bank? Check.”

“This country must be civilised. ”

Yet, can we really be so absolute about the matter? Read more