Lacy Hunt Quotes on Business & Commerce (3 Quotes)

To have an effective monetary policy, you have to have a robust borrowing and lending cycle, ... The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.

Real income growth is deteriorating because of job losses, and income growth is going to remain weak until such time as it's reversed by a tax cut, which is months away at the earliest. Then there's a huge wealth loss from the stock market and no pent-up demand for goods.

The country is entering a period of debt deflation, where households and businesses are forced to move funds from spending to debt repayment. This forces down economic growth and reduces inflationary pressures and long-term interest rates.