: Defaulting on or renegotiating debts to reduce the total burden .
: Debts rise faster than incomes, fueled by high leverage and soaring asset prices . Big Debt Crises
: The economy slowly returns to normal, often taking 5–10 years for GDP to recover . 🛠️ The Four Policy Levers : Defaulting on or renegotiating debts to reduce
💡 : A "beautiful deleveraging" happens when policy makers balance these tools so that nominal growth stays above the nominal interest rate . If you'd like to dive deeper, I can provide information on: I can provide information on: