Trying to understanding Mark Blyth’s statement about Keynes
Without context, it is unclear what Blyth meant. However, the usual argument runs as follows. The worker starts out with a certain nominal wage, and nominal debts. If wages and prices fall by some percentage, for current spending, the two changes cancel out - goods will cost the same percentage of weekly wages as before. However, the drop in prices does not reduce debt payments, and so those are larger relative to wages.