Economist's View: The Increase in Household Debt Prior to the Crisis is Not a Moral Issue
Economist's View: The Increase in Household Debt Prior to the Crisis is Not a Moral Issue:
This very interesting. I haven't quite put my arms around the implications, but there seems to be a real downside to the lack of inflation. The 'stable' prices but no growth in nominal wages have made existing debt burdens more difficult. So we really need so inflation but not general inflation - wage inflation. This seems to be a concept that is more easily understood than implemented. As we saw in the run up to 2007-2008 - we had asset pricing inflation but not corresponding nominal wage inflation.
This very interesting. I haven't quite put my arms around the implications, but there seems to be a real downside to the lack of inflation. The 'stable' prices but no growth in nominal wages have made existing debt burdens more difficult. So we really need so inflation but not general inflation - wage inflation. This seems to be a concept that is more easily understood than implemented. As we saw in the run up to 2007-2008 - we had asset pricing inflation but not corresponding nominal wage inflation.
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