Household Debt and the Macroeconomy

Settlements, Bank for International; Debelle, Guy

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Household Debt and the Macroeconomy

BIS Quarterly Review, March 2004

14 Pages Posted: 3 May 2012 Last revised: 26 Jun 2013

See all articles by Bank for International Settlements

Bank for International Settlements

Bank for International Settlements (BIS)

Guy Debelle

Reserve Bank of Australia

Date Written: March 1, 2004

Abstract

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