According to BusinessInsider if you're interested in balance-sheet recessions and the effect of the debt overhang on the state of the US economy, you should read Mike Konczal's interview with economist Amir Sufi.
Sufi has co-authored a couple of very interesting papers (here and here) on the connection between household debt, the housing bust, and persistently low employment. We presented one of his arguments here.
While it may seem intuitive that the huge debt overhang is responsible for the ongoing economic malaise, not all economists are convinced. In fact, a lot of economists specifically hate this idea, since in their perfect-model worlds, there's a creditor for every debtor, and so on net, total debt levels shouldn't matter….
Find out more at: http://www.businessinsider.com/a-simple-explanation-of-why-inequality-has-made-the-great-recession-so-much-worse-2011-12
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