Home  Journals  Financial Analytics: Science and Experience  28(214) - 2014 July

Modern cycle trends of global deleveraging

Available online: 18 July 2014

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 14-21

Modern global world debt crisis entails depression, deflationary collapse resulting from the accelerated growth of debt in comparison with income. This imbalance is eliminated in the process of deleveraging: restoration of acceptable balance in the “liabilities – assets – income” chain. Among the five main ways of deleveraging the coordinated action by the central banks and governments within the framework of the gradual monetization of debt, when the new monetary supply allows refinancing serves as the most appropriate way the current liabilities without the aggravation of incomes and expenditures for the future periods.

Keywords: deleveraging, deflation, debt, default, depression, liquidity trap

References:

1. Dalio R. Kak deistvuet ekonomicheskaya mashina [In what way the economic machine operates]. Available at: Link. (In Russ.)
2. Bloomberg news agency. Available at: Link.
3. Balance Sheet of Households and Nonprofit Organizations. B. 100. Available at: Link.
4. Central Intelligence Agency. Available at: Link.

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ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

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