Sentences with phrase «by asset deflation»

Not exact matches

Unfortunately, Mr. Krugman's failure to see today's economic problem as one of debt deflation reflects his failure (suffered by most economists, to be sure) to recognize the need for debt writedowns, for restructuring the banking and financial system, and for shifting taxes off labor back onto property, economic rent and asset - price («capital») gains.

'' — Phase 4: Instability after 1929 caused by deflation of assets from overpriced levels and exacerbated by excessive debt levels, leading to depression of economic activity.

Asset - price inflation fueled by the Federal Reserve — is giving way to debt deflation.

Every day that goes by with deflation, your assets are worth less than the day before in real terms.

I very much doubt that in September 2008, had financial assets been funded predominately by equity instead of debt, that the deflation of asset prices would have fostered a default contagion much beyond that of the dotcom boom.

It's also possible to have goods inflation and asset deflation at the same time; its definitely possible to not save enough as a culture, or to have resources diverted by the government to fight a war.

The busts always involved leveraged overinvestment in favored asset classes, accompanied by frauds and followed by bankruptcies and deflation.