fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …

This paper examines macroeconomic dynamics of household debt and housing prices. Drawing on Minsky's insights into … financial instability and cycles, our framework combines household debt dynamics with behavioral asset price dynamics in a … Keynesian macro model. We show that endogenous boom-bust cycles can emerge through the interaction between household debt and …

As Korea's household debt has increased rapidly since the mid-2000s, concerns that its economy's hard-wired leveraging … long-run trend. Housing preferences and monetary shocks can both trigger deleveraging, as most household debt is profoundly … macroeconomic effects of deleveraging. Because a lower loan-to-value (LTV) ceiling limits the size of household debt, the …