Something Borrowed

There is always some level of borrowing in an economy. That level is a variable: It changes as years go by.

In the years leading up to the Great Depression there was a high level of borrowing. During the Great depression, that level fell. And since the end of World War II the level of borrowing has been increasing again -- or had been, until our recent financial crisis and the great deleveraging.

Arthurian economics claims that the level of private-sector borrowing is a significant factor affecting economic performance.