GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Monday, July 4, 2016

Inequality, Debt and Credit Stagnation

What Larry Summers calls "secular stagnation"--which blames the limp economy on slower population growth and technical change--is actually "credit stagnation" due to too high a level of private debt. I explain the logic behind credit being an essential component of aggregate demand and income; the empirical consequences--including stagnation in the "Walking Dead of Debt" countries and coming crises in the "Future Zombies" countries; and a complex systems approach to economic modeling which transcends "the Lucas Critique".

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