If there is a single word that appears most frequently in discussions of the economic problems now afflicting both the US and Europe, that word is surely “debt.” Between 2000 and 2008, household debt rose from 96% of US personal income to 128%; meanwhile, in Britain it rose from 105% to 160%, and in Spain from 69% to 130%.
Debt, deleveraging, and the liquidity trap
Paul Krugman, 18 November 2010
A new watchdog would guard us from debt
Tim Besley, Andrew Scott, 25 February 2010
A legacy of the financial crisis and subsequent government intervention has been large fiscal deficits and soaring public debt. The UK’s position is worse than most, as it entered the recession with a significant structural deficit, but Portugal, Ireland, Greece, and Spain are also facing growing concerns over their government debt.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014