Issue An elevated balance sheet unwinds through productivity, inflation, a reset, or not at all

Summary

MGI frames the central question as how an inflated balance sheet resolves: a productivity acceleration in which higher income supports high asset values and debt, a sustained inflation that cuts the real value of assets and debt while eroding inflation-adjusted wealth, a balance sheet reset of falling asset values, deleveraging, and defaults with lengthy lost growth, or a continued high plateau under secular stagnation that preserves wealth on paper at the cost of growth and rising leverage.