A decline in debt growth begins in 1986:
|Graph #3: Beginning in 1986 there was a strikingly unusual fall in |
the growth of total debt that lasted into the early 1990s.
An increase in money growth soon follows:
|Graph #4: Before that decline of debt growth had ended, an increase in the growth of |
circulating money was under way. This increase lasted to the mid-1990s.
These patterns shift the "debt per dollar" ratio, 1990-94:
In response, best-case GDP improves almost immediately:
|Graph #6: Potential GDP shows a full percentage point improvement between 1993 and 2000,|
in response to the reduced ratio of accumulated debt to circulating money.