Around the world there are a lot of complaints that there is too much debt, that debt will prevent a recovery, and that debt is the root of all problems – be it fiscal deficits, debt fueled consumption, or a debt powered housing market. While there are undeniable issues to keep in mind, there are …
Category Archive: Financial stability
Permanent link to this article: http://www.tvhe.co.nz/2011/08/11/a-point-on-debt/
Apr 21 2011
Financial stability, the crisis, and counterfactuals
In an interesting post on macro-blog, two things are mentioned towards the end: Specifically, the pre-2008 consensus argued that monetary policy should follow a ‘rule’ based only on output gaps and inflation, but a few dissenters thought that credit aggregates deserved to be watched carefully and incorporated into monetary policy. The influence of the credit …
Permanent link to this article: http://www.tvhe.co.nz/2011/04/21/financial-stability-the-crisis-and-counterfactuals/
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