…balanced budget while the private sector is deleveraging… Me: He probably does know. But he also knows that the public doesn’t know that. (I didn’t.) And when you’re goal is…

…2. The second part of any IMF program (first, really) is controlling fiscal balances through ‘austerity’; but this is not possible if the private sector is simultaneously deleveraging and external…

…able to set a new precedent of public sector and private sector deleveraging amid weakening external demand and a fixed exchange rate. However, I’d like to focus here on the…

…quarters – Europe is a few years behind the US in their deleveraging cycle. Furthermore, unless the bank recapitalization effort is done by some pan-euro body and ALL banks are…

…the US Consumer from the BlackRock Investment Institute, If long-term leverage sustainability is assumed to reside near 1990 levels, then the bulk of the deleveraging process remains ahead of the…

…Why? Because without significant jobs growth, it’s unclear that we’ll see the wage, salary, and income generation needed for a healthy continuation of the deleveraging cycle. On the bright side,…

…taxes) and producing unemployment. Consumers and firms alike are feeling this in Europe. In the US, fiscal policy has been accommodative enough to allow for private sector deleveraging while keeping…

…of nominal demand. This is the problem we all know and recognize. Since the financial crisis hit, banks, corporations and individuals have been deleveraging, and that means not enough money…

…to 149% by Q1 2010. Furthermore, recent deleveraging by UK households has occurred through income gains, rather than paying down debt: spanning the period Q2 2009 to Q1 2010, the…

…the next decade under the CBO’s alternative fiscal scenario.” I thought that the analysis was curious and too “partial”. If one believes the deleveraging story, then domestic private saving is…