A Tale of Two Bailouts: Effects of TARP and PPP on Subprime Consumer Debt

2021 ◽  
Author(s):  
Allen N. Berger ◽  
Onesime Epouhe ◽  
Raluca A. Roman
Keyword(s):  
Consumer Debt

Consumer Debt and Inflation

1958 ◽  
Vol 16 (1) ◽  
pp. 61-64
Author(s):  
Paul A. Montavon
Keyword(s):  
Consumer Debt

Consumer debt and unemployment

2016 ◽  
Vol 23 (17) ◽  
pp. 1250-1252
Author(s):  
Sherrill Shaffer ◽  
Bianca Zuniga
Keyword(s):  
Consumer Debt

scholarly journals Consumer Debt Dynamics: Follow the Increasers

2014 ◽  
Author(s):  
John Carter Braxton ◽  
Edward S. Knotek
Keyword(s):  
Consumer Debt ◽  
Debt Dynamics

The Long Slump

2011 ◽  
Vol 101 (2) ◽  
pp. 431-469 ◽  
Author(s):  
Robert E Hall
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Inflation Rate ◽  
Full Employment ◽  
Consumer Debt ◽  
Real Rate ◽  
Consumer Durables ◽  
The Great Depression ◽  
Real Estate Prices ◽  
The Interest Rate

In a market-clearing economy, declines in demand from one sector do not cause large declines in aggregate output because other sectors expand. The key price mediating the response is the interest rate. A decline in the rate stimulates all categories of spending. But in a low-inflation economy, the room for a decline in the rate is small, because of the notorious lower limit of zero on the nominal interest rate. In the Great Depression, substantial deflation caused the real interest rate to reach high levels. In the Great Slump that began at the end of 2007, low inflation resulted in an only slightly negative real rate when full employment called for a much lower real rate because of declines in demand. Fortunately, the inflation rate hardly responded to conditions in product and labor markets, else deflation might have occurred, with an even higher real interest rate. I concentrate on three closely related sources of declines in demand: the buildup of excess stocks of housing and consumer durables, the corresponding expansion of consumer debt that financed the buildup, and financial frictions that resulted from the decline in real-estate prices. (JEL E23, E24, E31, E32, E65)

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