The early 21st century has been distinguished by two economic conditions: high debt, and low inflation. Traditionally, many economists have viewed that high debt should be accompanied by high inflation, but now some are arguing that the high debt environment will be a cause of low inflation. The factor not being considered and driving this divergence of views, is the implication of the type of debt on the broader economy. It is private debt growth that precedes inflation growth, and the rapid accumulation of private debt causes household balance sheet fragilit...