Good post by @jturek18
https://jonturek.blogspot.com/2020/05/the-global-savings-glut-modern-policy.html
I would add that:
1. Savings glut is a symptom of persistent weak aggregate demand.
2. Weak aggregate demand is caused by rising inequality, rising leverage, and balance sheet fragility.
3. Policies aimed to stabilize balance sheets
...end up reinforcing the bases of weak aggregate demand--result, is a structural trap. @Cam72414595
One more point: stagnation is a political choice. To paraphrase @BuddyYakov, we are not following Japan, we are following the Soviet Union!
You can follow @teasri.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled: