Go with the Flow

摘要

During the go-go years of the credit boom, too much debt was accumulated. Now it's pay-back time, but the pain may not be as great as many fear.rnMany analysts believe that deleveraging in the U.S. and elsewhere will constrain future economic growth. In fact, earlier banking crises have been followed by strong economic pickups even as credit continued to contract. Those who worry about the amount of debt outstanding are ignoring a much more important factor: Namely, it is changes in the flow of new credit that affect economic growth.