The media, governments and mainstream economists are obsessed with concerns over government debt. Yet in the UK and most other developed nations private debt is a bigger issue. Why is it that we expect our governments to operate without borrowing, whilst many of us are mortgaged to the hilt? In this edition of The Debunking Economics podcast we examine the two types of debt and the consequences of each rising to high levels. Also, why does one tend to rise while the other falls? What can we learn from the 1920s? And why is the trade balance a related, but more important, issue.

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