Sentences with phrase «by debt deflation»

So debts will be kept on the books and the economy will slowly be strangled by debt deflation.

So in order to save bondholders and banks from losing, the economy would be wrecked by debt deflation.

Not exact matches

The sharp jump in debt yields in tandem was mirrored by a rally in commodity prices, which suggests that investors are becoming less worried about the risks of deflation.

September 2003 (188 kb PDF file): Research summaries on sovereign bonds and public debt management and on international trade; country study: Sweden; summaries of new study on deflation and recent book: Sweden's Welfare State; contents of latest issue of IMF Staff Papers; visiting scholars at the IMF; titles of recent IMF working papers; list of external publications by IMF staff.

In all these cases the effect of debt deflation extracting interest is not only on spending — and hence on current prices — but on the economy's long - term ability to produce, by eating into natural resources and the environment as well as society's manmade capital stock.

Posted by Nick Falvo under banks, budgets, capitalism, debt, deficits, deflation, democracy, economic crisis, economic history, Europe, exchange rates, financial crisis, Greece, IMF, inflation, monetary policy, recession, taxation, unemployment, wages.

All of these economies are shrinking by what's called debt deflation.

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.

The effects have been displaced onto public debt, made worse by near deflation across the South.

The result is a double - crisis: austerity stemming from debt deflation, while public health, communications, information technology, transportation and other basic infrastructure are privatized by corporate monopolies that raise prices charged to labor and industry.

But there also was concern that the Syriza leaders did not begin immediately upon their January election victory to educate voters on what actually is at issue: why remaining subject to the junk - economics dictates by the IMF and ECB will make the economy subject to chronic debt deflation.

'' — 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.

For deflation to seriously happen, not only the current extreme credit expansion by the central banks and states (through «quantitative easing», stimulus packages, monetising and then spending national debt etc.) but also the money that was released into the economy PRIOR to the collapse would have to be «mopped up» again.

Trying to save it by keeping the debts in place — and letting Wall Street banks «work their way out of debt» at the U.S. economy's expense — threatens to lock the economy in a chronic debt deflation and depression.

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

John Major restored low inflation and falling unemployment by combining another monetary deflation with an expansionary monetary policy that doubled the national debt, as Reagan had done.

And, by a full market cycle, I mean a period of time long enough to include a major debt deflation, like the 30s and now.

The bond rally and forex drop in value have been driven by fears of deflation and speculation that the European Central Bank will need to continue, if not increase, the purchasing of debt to stimulate the region's economy.

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.

So long as the banking / debt complex is not threatened, the worst you get is something like the deflation of the dot - com bubble, and at present, I don't see what it threatened by that aside from cryptocurrencies and the short volatility trade.