Law Commons^™

The Way Forward: Moving From The Post-Bubble, Post-Bust Economy To Renewed Growth And Competitiveness, Daniel Alpert, Robert C. Hockett, Nouriel Roubini

Cornell Law Faculty Publications

We argue that the U.S. economy is presently mired in a particularly tenacious, Fisher-style debt-deflation rooted in long term secular trends in the domestic and global economies. Global productive capacity has steadily outpaced global absorptive capacity for several decades now, and the latter will not catch up with the former for a good many years to come -- if ever. In order to avert long-term Japanese-style stagnation at home and quite possibly slowdown and slump worldwide, the U.S. will have both (a) to eliminate private sector debt-overhang from 'both sides' of the same, and (b) to act in concert with …