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There is a consensus among the majority of economists that the credit supply is limited by current household saving. If governments or foreigners ran deficits, they would absorb this limited saving so that firms could not borrow any longer and had to reduce their investment. This is the...
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. First, income growth is a more important predictor of housing bubbles across OECD economies than financial variables …, realize more restrained income growth and, in turn, are less prone to housing bubbles …
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