Using state-dependent local projection methods and historical U.S. data, we find that government spending multipliers are considerably larger in periods of private debt overhang. In particular, we find significant crowding-out of personal consumption and investment in low-debt states, resulting...

Over the past decade, deficit spending by consumers has supported the United States economy. Research Associate Robert Parenteau analyzes the financial balance of American households and finds that the pace of deficit spending is likely to stall and, possibly, reverse course. This reversion will...

Introduction: everything old is new again -- When personal debt was really business debt (2000 BC-1920 AD) -- Everybody paid cash for the Model T (1908-1929) -- Fannie Mae can save America (1924-1939) -- How I learned to stop worrying and love the debt (1945-1960) -- Discounted goods and...