National balance sheets

"As Morgan Stanley points out, financial repression was associated with quite benign outcomes after the second world war. The economy steadily grew its way out of the debt. But the big difference with today is that although post-1945 governments were burdened by war debts, the private sector was relatively unlevered; now both sectors carry high debt. This makes it much more difficult to grow your way out of the crisis. As Japan shows, you can hold rates near zero for ages without prompting companies or consumers to borrow." So, now what?

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Source:

http://www.economist.com/blogs/buttonwood/2013/01/debt-crisis

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