Loans to Households and Unemployment Reduction : A Worldwide Panel Data Analysis (2001–2011)

In the present paper an empirical analysis will point out that loans to households trigger consumption which in turn through the creation of economic growth, as claimed by Saito (2007), reduces unemployment. Austerity measures should not last for too long, since economy will face too many difficulties to recover. The sample covers all world (capitalist and ex-communist) during the period 2001 - 2011. Data are drawn from O.E.C.D. and are elaborated by means of the Eviews software package