As I explain in this book, private debt drives economic performance, because the change in private debt—which I call credit, using the terminology of accounting—is a significant, and by far the most volatile, source of aggregate demand. It is therefore the dominant determinant of whether the economy will be in a boom or in a slump. And a credit-driven boom will contain the seeds of its own destruction in a crash, as I explain in this book.
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As I explain in this book, private debt drives economic performance, because the change in private debt—which I call credit, using the terminology of accounting—is a significant, and by far the most volatile, source of aggregate demand. It is therefore the dominant determinant of whether the economy will be in a boom or in a slump. And a credit-driven boom will contain the seeds of its own destruction in a crash, as I explain in this book.