Aug

30

"Then, the very effort of individuals to lessen their burden of debts increases it, because of the mass effect of the stampede to liquidate in swelling each dollar owed. Then we have the great paradox which, I submit, is the chief secret of most, if not all, great depressions: The more the debtors pay, the more they owe. The more the economic boat tips, the more it tends to tip. It is not tending to right itself, but is capsizing." — Irving Fisher, "The Debt-Deflation Theory of Great Depressions", Econometrica, Vol. 1, pp. 337-357 (1933).


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