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For example, Mr Bernanke co-wrote a well-known model in 1999 where the existence of debt makes downturns deeper and longer.
While an improvement over what had existed before, the model fails to explain why most recessions do not go hand-in-hand with severe crises; the "frictions" and "accelerators" produced by the existence of debt are always proportional to the size of the "shocks" endured by the real economy.
According to Mooij (2011), although the existence of debt in the capital structure did not cause the financial crisis, excessive leverage makes firms more vulnerable to economic shocks and therefore debt bias might have contributed to the extent of the crisis.
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As for foreign orders, they are paid on delivery with no existence of debts as in domestic orders.
The existence of a debt ceiling questions the validity of our Republic's debts; it presupposes that Congress will continue to overdraft.
The existence of the debt guarantee did not prevent a gap appearing between borrowing costs for the two countries.That did nothing to help the Irish economy after independence.
But since these links are not immediately apparent, the existence of a debt may make individuals spend more on consumption and save less than they otherwise would.
In this paper we examine a sufficient explanation of the value of fiat money through the existence of a debt instrument which allows consumption to be moved earlier in time.
In this sense "we owe it to ourselves". But since these links are not immediately apparent, the existence of a debt may make individuals spend more on consumption and save less than they otherwise would.
The existence of the debt did not literally cause the downturn (the consensus is that the proximate cause was a run on the shadow banking system), but it made a deep and sustained contraction far more likely.
The companies were accused of violating the F.T.C. Act and the Fair Debt Collection Practices Act by calling consumers several times a day, even after being asked to stop; calling early in the day or late at night; calling consumers' workplaces; and leaving phone messages that disclosed the debtor's name and existence of the debt to third parties.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com