Mason, J. W.; Jayadev, Arjun - In: American Economic Journal: Macroeconomics 6 (2014) 3, pp. 214-34
The evolution of debt-income ratios over time depends on income growth, inflation, and interest rates, independent of any changes in borrowing. We examine the effect of these "Fisher dynamics" on household debt-income ratios in the United States over the period 1929–2011. Adapting a standard...
