debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … constraints generate a positive comovement between the household's debt, the stock of durable goods and labor supply following … purchases and the subsequent debt repayment. Increasing the speed of debt repayment amplifies these movements. …

debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate … constraints generate a positive comovement between the household's debt, the stock of durable goods and labor supply following … purchases and the subsequent debt repayment. Increasing the speed of debt repayment amplifies these movements"--Federal Reserve …

Over the past two decades, U.S. consumers have increasingly relied on unsecured debt to finance consumption. The growth … in unsecured debt has been particularly striking for low-income households. Some researchers have suggested that poor … households use this debt to smooth consumption intertemporally, implying that these credit markets effectively serve as a safety …