Oct 24, 2021
Association is not necessarily causation. You'll note that in that graph the recession invariably precedes the change in govt. vs. private "balance" (whatever that is from this unsourced graph) . Looks more to me like the recession is causing the supposed imbalance, not the other way around.
I think "every damn time" is a strong enough indicator to suggest causation. I'm seeing contractions in the net money supply before each recessionary event. I'm not sure what you are looking at.
The graph is from FRED, a government funded site of the St Louis Fed.
