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There's misunderstanding of debt's role in the economy

Fed Chair Janet Yellen holds a press conference at the Federal Reserve Board in Washington,DC on Dec 17, 2014 .

MANY economists, including Janet Yellen, view global economic troubles since 2008 largely as a story about "deleveraging" - a simultaneous attempt by debtors almost everywhere to reduce their liabilities. Why is deleveraging a problem? Because my spending is your income, and your spending is my...

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