tag:blogger.com,1999:blog-2098432983500045934.post1689253034445965461..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: It works about as well as everything else the Fed doesThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2098432983500045934.post-76468771646101993282014-03-22T14:02:47.537-04:002014-03-22T14:02:47.537-04:00Hey Jim. If FRED had been cooperative, I would hav...Hey Jim. If FRED had been cooperative, I would have included or excluded S&L government debt as needed to duplicate Keen's graph.<br /><br />I understand a lot of people would do it your way -- I think because Federal is the money provider and stands apart from all the rest, which I surely agree with.<br /><br />But a lot of people would lump S&L in with Federal and call it "government" and think of it as "the enemy". I don't, but I do like to look at the numbers their way, too. Covering all bases.<br /><br />Glad I'm not the only one having trouble with the new FRED.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-35470317196346108072014-03-22T10:22:50.338-04:002014-03-22T10:22:50.338-04:00Hi Art,
I also looked at the private debt to GDP ...Hi Art,<br /><br />I also looked at the private debt to GDP relation at FRED and got tangled up in errors similar to what you describe. I did eventually get some answers.<br /><br />The thing is that private debt is much larger than GDP. Since private debt is more than twice as large as GDP if private debt is growing at 1% and GDP is growing at 2% then private debt will increase in dollars faster than GDP will increase in dollars.<br /><br />Lately, GDP has a rate of growth that is greater than the rate of growth of private debt, but the dollar increase in private debt is greater than the dollar increase in GDP.<br /><br />I notice you exclude State and local govt debt from the private sector. I would include it as part of private debt.<br /><br />-jimjimnoreply@blogger.com