things being equal. And there is an effect there. I think though that the main thing ultimately is what happens to inflationary expectations and the main ingredient inflationary expectations. It depends upon whether there's too much money chasing too few goods or whether we have the reversal of that situation. So now, you're putting aside the national savings rate. I just know that the personal savings rate throughout the 90s and early 2000s continue to decline. And yet this is a period of declining interest rates. Is that because we were importing foreign savings? It was declining. And at that point in time, the debt levels were deleterious. They were triggering the law of diminishing returns. So the increased indebtedness was pulling the growth rate down. But you still had positive saving. The budget deficit were not so large that they were greater than the private and the foreign savings. So in that time period, generally speaking, the debt was when you're operating with the (26/41)
You are viewing a single comment's thread from: