My question is, suppose what's wrong is that there are insufficient Net Financial Assets (Equity) to supply the demand for private sector savings (broadly, and precisely defined)? In this model, the extra required savings, at the sector level, aren't available for any price and so the market doesn't clear. Deflation doesn't help, because it makes real debt burdens worse, and low interest rates don't help because ameliorate and exacerbate the issue at the same time.Winterspeak
What price is wrong?
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