Ending Over-Lending


About Ending Over-Lending

Ending Over-Lending advocates the use of cash flow analysis to assess the financial stability of nations. While extensively and successfully used in corporate financial analysis, cash flow approaches are significantly under-studied in economics. The debt to cash flow ratio, for example, can provide a direct measure of the debt-carrying capacity of nations. Ending Over-Lending proposes a macro-prudential foundation for 21st century monetary macro-economics in which nations manage their affairs within a Stable Zone of leverage.