deregulation in Finland was similar to that in the other Nordic countries. As in Norway and Sweden, household indebtedness started … loans. Measured by the ratio of household debt to annual disposable income, household indebtedness peaked in 1990 at more … plummeted. High indebtedness and overcapacity especially in the domestic sector will require several years of adjusting. …

percentage change in GDP, an income surprise variable combined with lagged aggregate indebtedness, a real interest rate surprise … variable combined with lagged aggregate indebtedness, and a deregulation dummy. The innovation in this paper is the use of … surprise variables based on macroeconomic forecasts. According to the results, high indebtedness combined with negative …

that they are perhaps even more strongly related to indebtedness, real interest rates and asset prices. The importance of …

-specific macro variables: output growth shocks, real interest rates, and a measure of excessive private sector indebtedness. We find … more moderate level of indebtedness. Low interest rates during the recent recession may have been another, perhaps the most …