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Understanding The Economic Machine Part 4

The limits of debt

A big theme of Part 1 and the other earlier parts of this series is how debt allows spending, investment, and therefore the economy to expand like a rubber band beyond the limits imposed by the money supply. But if the ability to borrow to keep growing sounds too good to be true, that’s because it is. There are limits to debt as well.




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Tony Yiu

Tony Yiu

Data scientist. Founder Alpha Beta Blog. Doing my best to explain the complex in plain English. Support my writing:

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