How did the world economy recover after the 2008 crash?
In: Economics
Global debt levels were reduced to manageable levels through some combination of the following: austerity, debt restructuring, wealth redistribution and printing money (government stimulus). Once that happened, the short and long term debt cycles could begin again – lenders started lending money again, and people spent that money, driving up other people’s incomes, making them more creditworthy, then they borrowed money and spent it, driving up other people’s incomes, etc.
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