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Without debt accumulation, there wouldn't be enough demand – spending – to keep the economy moving.
Years of waste, civil service inefficiency, and debt accumulation have bloated the government's recurrent expenditures.
An accompanying debt policy can be designed – prescribing debt accumulation at impact and debt redemption in the new steady state – to ensure everybody gains to the same extent.
A large increase in inflation credibility can trigger a process of debt accumulation.
'Not acting moves the risk closer,' he explained, because every year of not acting adds another year of debt accumulation.
We model a monetary union where fiscal discretion generates excessive debt accumulation in steady state and inefficiently delayed debt adjustment following shocks.
Since 2009, the recovery hype has replaced debt accumulation as the chief distraction, sustaining the illusion that capitalism adequately serves the 99%.
From the 1970s to the economic collapse in 2008, household debt accumulation distracted American workers from the stagnation of their real wages.
Unfortunately, the new episode of leveraged-buyout mania coincides with another huge debt accumulation resulting from the residential real estate bubble.
Right now, the system cannot easily tolerate such giant debt accumulation.
But less deficit reduction also means more debt accumulation over time.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com