Is it the debt, Ctd
Compare the following two charts, again from the Debt and Deleveraging report by the McKinsey Global Institute:
And I remind you again of UK and US Nominal GDP:
I look at these charts and think: “Sorry, which economy is supposed to be experiencing stagflation, and which one is supposed to be in recovery?”
I’m not saying that deleveraging doesn’t matter, I’m saying that it isn’t obvious to me how it is supposed to explain the discrepancy.