Inflation, Debt, and The Fed (Part 1) with Scott Sumner and Lyn Alden
Village Global Podcast
00:00
The Debt Cycles - And You Know What You're Doing With Them
When we kind of string multiple those credit cycles together, you get higher and higher debt as a percentage of g d p each time. And so then you start to get a deal averaging or recession. At that point Debt is very, very high, and you can't really rely on that monitar policy easing any more. Aand so we know, last time were in the situation, ran very large deficits. This time we have an external catalis of a pandemic hitting a highly leveraed system.
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