14 Pages Posted: 3 May 2012 Last revised: 29 Sep 2013
Date Written: March 1, 2004
Lower interest rates and an easing of liquidity constraints have led to a substantial rise in household debt over the past two decades. The greater indebtedness has made the household sector more sensitive to changes in interest rates, income and asset prices. This enhanced sensitivity is higher where more households have variable instead of fixed rate mortgages.
JEL Classification: E210, E520
Suggested Citation: Suggested Citation
Settlements, Bank for International and Debelle, Guy, Household Debt and the Macroeconomy (March 1, 2004). BIS Quarterly Review, March 2004. Available at SSRN: https://ssrn.com/abstract=1968418
By Paul Tucker
By Tim Hampton