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I would argue that is mostly because on the macro level the private sector is paying off their accumulated debt, hence less spending. That's pretty much the def
by Inthenameofmine 10y ago
I would argue that is mostly because on the macro level the private sector is paying off their accumulated debt, hence less spending. That's pretty much the definition of a deflationary spiral. I don't think this shows any sort of cultural shift.
- holri 10y agoThe private debt in Germany for example today is lower then 1995. [1] The accumulation of debt stopped already in 2000. [1] http://ec.europa.eu/eurostat/web/products-datasets/-/tipspd20 http://ec.europa.eu/eurostat/web/products-datasets/-/tipspd2...
- forgetsusername 10y ago>The accumulation of debt stopped already in 2000. Because Germany ran massive trade surpluses, while other Euro states took on debt to buy German goods. I don't see a cultural shift, either.