After a decline in the Debt-per-Dollar (DPD) ratio, the economy is vigorous.
The New Arthurian Economics
I predict vigor because that's what the graphs show me
The Arthurian
An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
After a decline in the Debt-per-Dollar (DPD) ratio, the economy is vigorous.
The way to read the debt-per-dollar ratio is this: It goes up until there is a big economic problem, it goes down while that problem is being solved, and it goes up again after the problem is solved...Art demonstrates good use of math in econ.
If only they would use the accelerated repayment of debt as their main tool for fighting inflation, we could have that permanent quasi-boom.What is the basic principle for fiscal policy on which MMT is based? Accommodate saving desire through functional finance so that private debt doesn't accumulate, leading to financial instability and economic contraction.