ilia25
I can do math
- Jan 12, 2012
- 1,859
- 100
- 48
Here is the short version:
The problem is that the borrowers try to get rid of their debt way too fast for the monetary policy to counter. This result in falling incomes (depressed economy) and makes it harder to pay off the debt.
Hence, we need the government to slow down the deleveraging -- by taking more debt -- just enough for the monetary policy to catch up.
Really, how is putting millions people out of work helps them (or anyone else) to solve their financial problems?
Here is the link:
Deleveraging, Monetary Policy, and Fiscal Policy: A Further Note - NYTimes.com
The problem is that the borrowers try to get rid of their debt way too fast for the monetary policy to counter. This result in falling incomes (depressed economy) and makes it harder to pay off the debt.
Hence, we need the government to slow down the deleveraging -- by taking more debt -- just enough for the monetary policy to catch up.
Really, how is putting millions people out of work helps them (or anyone else) to solve their financial problems?
Here is the link:
Deleveraging, Monetary Policy, and Fiscal Policy: A Further Note - NYTimes.com