QuoteBut everything we've spoken about has focused on this kind of boom-bust cycle; what I've been doing over the last few years is asking a deeper question, which is why are we in this situation in the first place? Think of the good times before a recession. Why did we have to rely on debt to generate demand? Why do we need to borrow in the first place? You can talk about being lenient on consumers in times of collective trouble. But why do we get ourselves into that situation in the first place? If your economy is going into these crises repeatedly and seems to be addicted to debt, we have to ask what's going on.
Model it in equations and see what happens with different policies.