On the price front, import prices become almost unchanged because the continued upward pressure from the rise in crude oil prices around early spring is offset by the recent appreciation of the yen.
6 That the US economy made up lost ground more quickly than Europe after the Great Recession, even though the crisis originated in the US, is a case in point. Therefore, the answer to the question is not an “either/or”. From a macroeconomic perspective, credit and capital are complementary. Little would be gained by simply substituting one leg for another.