Has US household deleveraging ended? A model-based estimate of equilibrium debt

Bruno Albuquerque, Ursel Baumann, Georgi Krustev, 18 April 2014



The balance sheet adjustment in the household sector has been a prominent feature of the last US recession and subsequent recovery. The beginning of the economic downturn in late 2007 broadly coincided with a sustained reduction in household liabilities relative to income – that is, household deleveraging – which contrasted with the strong build-up of debt before the crisis.

Topics: Global crisis
Tags: Great Recession, household debt, household deleveraging

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