From Andrew Lainton Blog
''In recent years their has been a revival of the Credit theory of the business cycle. Pre-war it almost became mainstream – especially amongst Hawtry and his followers, such as those around the ‘old’ Chicago School such as Lauchlin Currie. Put very crudely growth is fulled by a net growth in credit and recession by its net contraction. When recession triggers negative balance sheets as opposed to just lower profits we have the worse condition of debt deflation and what today we call balance sheet recessions.''
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