tag:blogger.com,1999:blog-2098432983500045934.post4839836022971686834..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Public Debt Cannot "Get Ahead" of Private DebtThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2098432983500045934.post-43370089562708972882016-09-07T15:15:54.169-04:002016-09-07T15:15:54.169-04:00Today, the PDF of this post was rejected for listi...Today, the PDF of this post was rejected for listing in the Munich Personal RePEc Archive. Rejected... I didn't think that was possible.<br /><br />Their reason: <b>[X] The contribution appears to be of non-academic nature</b>.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-63216377742120459132016-09-04T16:20:56.216-04:002016-09-04T16:20:56.216-04:00BTW, Figure 2 takes down the “rather widespread co...BTW, Figure 2 takes down the “rather widespread consensus” (“public debt [is] acceptable as long as it doesn’t increase too much and too fast”) ... The consensus has the problem exactly wrong.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-53719680309361368572016-09-04T12:58:24.183-04:002016-09-04T12:58:24.183-04:00Policies that encourage paying down debt will grad...Policies that encourage paying down debt will gradually reduce the size of the financial sector of our economy. That is one of the things we need to do to prevent the problems that turn into financial crises.<br /><br />Policies that encourage paying down debt will gradually replace raising interest rates as a way to fight inflation.<br /><br />Policies that encourage paying down debt will reduce the financial cost in everything we make and everything we do. Reducing the cost of finance will free up money for wage increases and for higher profits to productive business, and it can do so while prices come down.<br /><br />Policies that reduce the financial cost embedded in U.S. output will make U.S. products more competitive in world markets.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-49390264381459341972016-09-04T12:45:16.941-04:002016-09-04T12:45:16.941-04:00"Because private debt growth was hindered by ..."Because private debt growth was hindered by neither crisis nor policy, it took 19 years to bring the ratio down ..."<br /><br />Maybe it doesn't sound good when I suggest that policy should hinder debt growth. But remember: Policy today encourages credit use and encourages the accumulation of debt. Policy is the reason debt accumulated to such a high level.<br /><br />We don't really need to "hinder" debt growth, exactly. But we do need to get rid of policies that encourage debt accumulation, and replace them with policies that encourage paying down debt.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-26833410888610667552016-09-04T11:17:20.609-04:002016-09-04T11:17:20.609-04:00Since private debt continued to grow at a rapid pa...Since private debt continued to grow at a rapid pace during the 1974-1993 period (and after) the insane increase of Federal debt shown on Figure 1 became necessary.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com