The Debt Tetralemma

Recently I’ve been asking myself the same question over and over: “Why is everyone freaking out about low economic growth?”

I reasoned that for the developed countries an annual real growth rate of 1.5-2.0% wasn’t the end of the world. After all, such a pace of growth would mean a doubling of living standards every 35 years or so. This would be enough for every new generation to enjoy double what their parents had in real income.

So why all the fuss about sluggish growth and the urgent need for stimulus? Read More