4min chapter

The Joe Walker Podcast cover image

Radical Uncertainty - Mervyn King

The Joe Walker Podcast

CHAPTER

The Importance of Debt Deflation in the Early Nineties

In 1994 you gave a presidential address to the European Economic Association titled Debt Deflation Theory and Evidence. Can you just give me an outline of the argument you made in that address and why it was important? I think conventionally the idea was that if people had become rather pessimistic animal spirits were low then businesses would invest less, so we'd expect the business cycle to be driven by investment. It seemed to me that actually the data suggested that in the early nineties the causes of the debt to the recession were much more to do with weak consumption.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode