supply significantly and that their customers reduced both borrowing and consumption relative to customers in non …-exposed banks. The credit supply channel can explain roughly one third of the decrease in aggregate private consumption observed in …

significantly and that their customers reduced both borrowing and consumption relative to customers in non-exposed banks. Our …

This paper studies the direct impact of households' debt on consumption over the business cycle. We use household … leverage, consumption, and asset prices. We find that debt levels exert a negative impact on consumption, which is particularly …' debt in past periods are not relevant in determining consumption; (ii) households adjust faster their consumption to debt …