Posts Tagged ‘Richard Koo’

Balance Sheet Recession

What happens when all the businesses in an economy start to reduce debt loads using cashflow at the same time?

According to Richard Koo, this action -> response -> reaction is what the “Great Depression” was all about and that the same factors are at play right now…only this time on a global scale.

Below is an except of his address to the Institute for New Economic Thinking at King’s College, Cambridge. Koo is the world-renowned chief economist of Nomura Research Institute and the author of “The Holy Grail of Macroeconomics: Lessons from Japan’s Great Recession”.

For more information see the Institute for New Economic Thinking website.

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