- relative to older borrowers has played a major role in easing the debt repayment burden in the presence of large income shocks …

ways: A debt effect increases credit card spending, while a credit effect leads to higher credit limits. In the short run … crisis, the credit effect exceeded the debt effect in the long run, pushing down long-term utilization. In our sample period … after the financial crisis, the debt effect dominated in the long run, and credit card utilization rates rose upon the …

head in the 50-59 age group) in Japan do not have inordinate amounts of debt and that their financial health is … satisfactory. However, we also find that households with a head in the 30-39 age group have shown a sharp increase in debt holdings …

No subject in the world creates more confusion than ‘debt.’ Nowhere there is a greater need for information because no … often sounds as if the whole world is somehow overindebted. The problem is that analysis is often based on gross debt, i. e … because you set off all net debts and liabilities of all sectors in the world against one another, there is no debt (i. e …

future. When demand is sufficiently indebted, the economy gets stuck in a debt-driven liquidity trap, or debt trap. Escaping …We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … accommodative monetary policy and deficit spending—generate a debt-financed short-run boom at the expense of indebted demand in the …

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by …-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is …

debt, also government debt and corporate debt are in some countries at levels not seen before. While there is a common … agreement that these high debt levels are not sustainable there is fewer consensus about the effect of changes in debt and … especially debt levels on aggregate demand. Based on a cross country study of 18 European countries we show that there is a …

We ask two questions related to how access to credit affects the nature of business cycles. First, does the standard … theory of unsecured credit account for the high volatility and procyclicality of credit and the high volatility and … that more households than normal fare very poorly). Second, does access to credit smooth aggregate consumption or aggregate …