Household Debt and the Macroeconomy

14 Pages Posted: 3 May 2012 Last revised: 29 Sep 2013

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

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

Bank for International Settlements

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4051
Switzerland

Guy Debelle (Contact Author)

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

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