Suchergebnisse

Comments on the decline in real wages & paradoxical rise in consumption in the US, arguing that the potential exists for particularly negative consequences. Data on the family debt burden indicate the class nature of the distribution of household debt, with mortgages, credit cards, & installment buying the areas of highest debt for most families. It is argued that low-income families are prime targets for predatory lending, eg, payday loans, subprime mortgage lending. Of greatest macroeconomic significance is home-secured borrowing, & it is contended that the housing bubble & strength of consumption in the economy are linked to the "household debt bubble," which could burst if interest rates rise & housing prices stagnate or decline. A step up in business investment in the US is required to forestall economic crisis. Further, the US economy's problem lies in the pursuit of wealth by a few at the expense of the population as a whole; only a radical reconstruction of society can arrest this. Tables, Charts. D. Edelman

"This punchy and original book argues that our 'culture of credit' is chronically dysfunctional, both individually and collectively. Johnna Montgomerie shows that abolishing household debts can help us end austerity and the unsustainable forward march of debt-driven growth"--

This thesis presents four essays that study the determinants of private household debt and the relation between private indebtedness and macroeconomic activity. Chapter 1 shows that inequality and household debt are cointegrated of order one and therefore share a common trending relation. In Chapter 2, I demonstrate that interpersonal comparison is an important driver of short-run credit movements. Chapter 3 points out that the effects of fiscal consolidations crucially depend on the level of private indebtedness. In Chapter 4, I present a model with financial frictions that is able to replicate the empirical responses of household debt and other main macro aggregates to technology shocks and income tax cuts.