tag:blogger.com,1999:blog-2098432983500045934.post7113733009067453305..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: If the growth of debt was one-for-one with the growth of GDP before the 1980s, the line would be flatThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-43424576067445133532016-12-04T12:07:00.196-05:002016-12-04T12:07:00.196-05:00Jim,
I see I unnecessarily complicated your calcul...Jim,<br />I see I unnecessarily complicated your calculation by using debt relative to GDP!<br /><br />Your graph starts with decline that lasts to the 1970s. Probably a declining Federal share:<br /><br />https://fred.stlouisfed.org/graph/?g=c1mp#0<br /><br />Yes. With the Federal component of TCMDO removed, the line shows increase from the start. But there still is a "disturbance in the force" in the mid-1980s, and the increase thereafter appears more rapid than before the disturbance.<br /><br />But if you then calculate the inflation-adjusted debt values (and use real GDP) the pre-disturbance region will show much more increase. <i>The dramatic thing that happened in the 1980s was the taming of inflation.</i><br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-71829903240181246432016-12-04T09:16:26.476-05:002016-12-04T09:16:26.476-05:00Looking at your graph of Total Credit to Private N...Looking at your graph of Total Credit to Private Non-Financial Sector, it is a pretty steady climb from WW2 until 2008, but that represents less than half the total debt today.<br /><br />looking at the other half of the debt, it is pretty obvious that something quite dramatic happened around 1980 <br /><br />https://fred.stlouisfed.org/graph/?g=c1ipjimnoreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-81396818624419255912016-12-04T04:19:44.106-05:002016-12-04T04:19:44.106-05:00For the record, I agree with much of what Bezemer ...For the record, I agree with much of what Bezemer and Hudson say in their article. I'm not listing all the things I agree with. I'm pointing out a few errors I see in the story they present.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com