| Item Type |
Other
|
| Abstract |
Crises of confidence turn booms into busts. Bloated household balance sheets and high debt offer the right ingredients for a confidence-driven housing bust. This column develops an analytic framework that accommodates the potential role of confidence fluctuations as a source of uncertainty in the economy. Current debt levels are shown to determine the exposure to crises of confidence. The results point to a clear role for macroprudential policy in the prevention of such crises. |
| Authors |
Hintermaier, Thomas & Koeniger, Winfried |
| Language |
English |
| Keywords |
Crises of confidence, household debt |
| Subjects |
economics |
| HSG Classification |
contribution to practical use / society |
| HSG Profile Area |
SEPS - Economic Policy |
| Refereed |
No |
| Date |
9 January 2016 |
| Publisher |
VOX (CEPR's Policy Portal) |
| Official URL |
http://www.voxeu.org/article/household-debt-and-cr... |
| Depositing User |
Caroline Ubieto
|
| Date Deposited |
13 Jan 2016 16:58 |
| Last Modified |
20 Jul 2022 17:26 |
| URI: |
https://www.alexandria.unisg.ch/publications/246685 |
Why household debt makes economies prone to crises of confidence
