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Credit check, Comments on the great moderation

Summary:
Gradual deceleration looks to be continuing:Growth here had been increasing, helping to offset the decline in govt. deficit spending, but after the oil capex collapse this measure of credit growth leveled off:Real estate as well as consumer loan growth have also leveled off:This story is all about income here as well. The consumer has been hit hard twice due to the recession and then tax hikes and it’s all ratcheted down a notch each time. Even in the prior recession personal income didn’t go down, as it has twice just in the last 8 years. So if you look at the total growth from 2007 to 2016 it’s pretty much in line with the reduced rate of growth of output and the lower levels of employment:

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Gradual deceleration looks to be continuing:
Credit check, Comments on the great moderation
Growth here had been increasing, helping to offset the decline in govt. deficit spending, but after the oil capex collapse this measure of credit growth leveled off:
Credit check, Comments on the great moderation
Real estate as well as consumer loan growth have also leveled off:
Credit check, Comments on the great moderation
Credit check, Comments on the great moderation
This story is all about income here as well. The consumer has been hit hard twice due to the recession and then tax hikes and it’s all ratcheted down a notch each time. Even in the prior recession personal income didn’t go down, as it has twice just in the last 8 years.

So if you look at the total growth from 2007 to 2016 it’s pretty much in line with the reduced rate of growth of output and the lower levels of employment:
Credit check, Comments on the great moderation

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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