Achieve Quote by Michael Spence
“A global economy that is levering up, while unable to generate enough aggregate demand to achieve potential growth, is on a risky path.”
About This Quote
Source Speech: Economic Forum, 2023
When an economy expands credit faster than demand, it creates instability and potential slowdown.
In simple terms: Too much borrowing without enough buying hurts growth.
Balance credit growth with demand.
Themes
Mood
Type
When to use this quote
- government budgeting
- business investment
- consumer spending
- monetary policy
Key Concepts
Questions to Reflect On
- How can policy stimulate demand without over‑leveraging?
- What signs indicate an economy is over‑leveraged?
If demand remains weak, leverage can lead to debt crises.