There is a large amount of intermediated borrowing and lending between households. Some of it is intergenerational, but … most is between older households. The average difference in borrowing and lending rates is over 2 percent. In this paper …

productivity was the shock that initiated the household debt boom and bust. The credit supply view is supported by four facts …, or households that previously were routinely denied mortgage credit. Second, the expansion in mortgage credit supply … in aggregate household debt. Fourth, the default crisis was driven mainly by lower credit score individuals. The view …