Art continues the argument.
"It's the debt, stupid."
Debt is financial cost, and it influences total factor production (TFP).
As Neil Wilson observed in a comment to another post:
The main argument against monetary policy and magic central banks is straightforward. It requires the expansion of private debt. Which is both endogenous and unstable. The whole theory on which magic central banks is based expects debt to be exogenous and stable.That sums it up. Leverage works both ways.
The New Arthurian
TFP: "Understanding what is driving the slowdown is key"