Challenging the PremissesNewer Posts at EconCrit
Wow -Great article. Actually coalesces your POV with mine.Salient question by Blissex in comments:The very big question here is the cause of this. Why ever does debt grow faster than ability to pay? Exactly so - which is why I think debt is a symptom or barometer, rather than the root cause.Cheers!JzBWV: monyvall. Makes ya wonder . . .
I can live with that. Of course, there is the cost of debt. But mainly what I show is how to evaluate policy: If we are doing the right things, DPD will fall.Exactly as it did under FDR.
What you need to demonstrate is how DPD is a better metric than Debt/GDP, debt/Income, or debt in any other relevant context.What factors influence this metric?What resultants depend on this metric?How, then, does this metric inform policy decisions?In short, what do we learn from it that is uniquely illuminating?Otherwise, it's just a curiosity.Cheers!JzB
Jazz and Art,You have to read Hudson's two Part article - The Mathematical Economics of Compound Rates of Interest: A Four-Thousand Year OverviewPart - IPart - IIAlso Why the “Miracle of Compound Interest” leads to Financial Crises
The spam filter's been acting up again lately. I'm aware, and checking it often.Oh, what fun they must have with this at Blogger!
Wow -
ReplyDeleteGreat article. Actually coalesces your POV with mine.
Salient question by Blissex in comments:
The very big question here is the cause of this. Why ever does debt grow faster than ability to pay?
Exactly so - which is why I think debt is a symptom or barometer, rather than the root cause.
Cheers!
JzB
WV: monyvall. Makes ya wonder . . .
I can live with that. Of course, there is the cost of debt. But mainly what I show is how to evaluate policy: If we are doing the right things, DPD will fall.
ReplyDeleteExactly as it did under FDR.
What you need to demonstrate is how DPD is a better metric than Debt/GDP, debt/Income, or debt in any other relevant context.
ReplyDeleteWhat factors influence this metric?
What resultants depend on this metric?
How, then, does this metric inform policy decisions?
In short, what do we learn from it that is uniquely illuminating?
Otherwise, it's just a curiosity.
Cheers!
JzB
Jazz and Art,
ReplyDeleteYou have to read Hudson's two Part article - The Mathematical Economics of Compound Rates of Interest: A Four-Thousand Year Overview
Part - I
Part - II
Also Why the “Miracle of Compound Interest” leads to Financial Crises