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In the 24 years since its introduction, the euro has experienced a financial crisis, a government debt crisis, a global pandemic, and an energy crisis-and survived. Using a model focusing on households, this Weekly Report shows that the monetary union’s stability is rooted in the fact that the...
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This paper illustrates a case where an increase of the in-terest rates improves the economic activity and reduces incomeinequality. This theoretical exercise deals with a simple model ofdisequilibrium with accountant identities of budget constraints. Inaddition, and following previous models,...
Persistent link: https://www.econbiz.de/10014566386
During the first decade of the 21st century, household FX loans spread in numerous countries in Central and Eastern …. Disregarding countries that joined the euro area, Hungary was the only state where household FX loans were completely phased out … about the causes and the impact of unsecured FX lending in the household sector and analyses the phasing-out of the …
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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 …
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