Ideas, so far.
Recessions are when business plans go wrong.
Depressions (and `Great Recessions) are when the people will not take on more debt.
To get the people to take on more debt, they must first shed some of the old debt (deleverage).
This can be `managed` into a beautiful deleveraging by three things happening in balance -
1. Writing down of the value of the debts.
2. Slowly paying off those debts.
3. Inflating the debts away.
Note that none of these are `quick fixes`~!
Austerity makes it harder for debts to be paid.
Government deficits make it easier for debts to be paid.
Quantitative Easing helps to gain time … that is all.
It is then up to the people concerned, to use that time to get the deleveraging done.
All of this, is to get us to a place, where we can `start all over again`.
Some people have put forward ideas, whereby it may be possible to avoid this ever repeating cycle.
(but old farty fuddydudds are in charge, so probably nothing much will change)
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