from the International Monetary Fund
– this post authored by Adolfo Barajas and Fabio Natalucci
Leverage, the ability to borrow, is a double-edged sword. It can boost economic growth by allowing firms to invest in machinery to expand their scale of production, or by allowing people to purchase homes and cars or invest in education. During economic crises, it can play a particularly important role by providing a bridge to economic recovery.
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