Sep 11, 2011

Debt: Three regions of the world

This explains partially why the world economy is turning around in terms of economic performance. Excessive debt by government in the developed world vs governments in the developing word. Remember that the 1980s was the lost decade for many countries in Latin America and Africa. It was due to excessive debt and the increase in the prices of oil. Alas, a lost decade is on its way for developed economies. Source (HT: Paul Krugman).

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