IDEAS home Printed from https://ideas.repec.org/p/lev/levysa/02-11.html
   My bibliography  Save this paper

Is Personal Debt Sustainable?

Author

Listed:
  • Dimitri B. Papadimitriou
  • Anwar Shaikh
  • Claudio H. dos Santos
  • Gennaro Zezza

Abstract

The long economic expansion was fueled by an unprecedented rise in private expenditure relative to income, financed by a growing flow of net credit to the private. On the surface, it seemed that the growing burden of the household sector's debt was counterbalanced by a spectacular rise in the relative value of its financial assets, but this was never a match among equals, and the great meltdown in the financial markets has proved this imbalance to be true. The private sector has dramatically cut back its acquisition of new credit and reversed the path of its financial balance, but this adjustment has been uneven within the sector: the business sector suffered a huge drop in investment while the household sector has continued to borrow.

Suggested Citation

  • Dimitri B. Papadimitriou & Anwar Shaikh & Claudio H. dos Santos & Gennaro Zezza, 2002. "Is Personal Debt Sustainable?," Economics Strategic Analysis Archive 02-11, Levy Economics Institute.
    • Handle: RePEc:lev:levysa:02-11
    as

    Download full text from publisher

    File URL: http://www.levyinstitute.org/pubs/perdebt.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dimitri B. Papadimitriou & L. Randall Wray, "undated". "What to Do with the Surplus: Fiscal Policy and the Coming Recession," Economics Policy Note Archive 98-6, Levy Economics Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anwar Shaikh & Gennaro Zezza & Claudio dos Santos, "undated". "Is International Growth the Way Out of U.S. Current Account Deficits? A Note of Caution," Economics Policy Note Archive 03-6, Levy Economics Institute.
    2. Gustav A. Horn & Katharina Dröge & Simon Sturn & Till van Treeck & Rudolf Zwiener, 2009. "Von der Finanzkrise zur Weltwirtschaftskrise (III)," IMK Report 41-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. L. Randall Wray & Dimitri B. Papadimitriou, "undated". "Understanding Deflation: Treating the Disease, Not the Symptoms," Economics Public Policy Brief Archive ppb_74, Levy Economics Institute.
    4. José Francisco Bellod Redondo, 2011. "Confianza, reformas y crisis económica," Contribuciones a la Economía, Servicios Académicos Intercontinentales SL, issue 2011-05, May.
    5. Korkut A. Ertyrk, "undated". "The Future of the Dollar: Has the Unthinkable Become Thinkable?," Economics Policy Note Archive 03-7, Levy Economics Institute.
    6. José Francisco Bellod Redondo, 2010. "La Crisis Imposible: Tragedia En Tres Actos," Contribuciones a la Economía, Servicios Académicos Intercontinentales SL, issue 2010-03, March.
    7. Claudio H. Dos Santos, 2004. "A Stock-Flow Consistent General Framework for Minskyan Analysis of Closed Economics," Macroeconomics 0402028, University Library of Munich, Germany.
    8. James K. Galbraith, "undated". "What is the American Model Really About? Soft Budgets and the Keynesian Devolution ," Economics Public Policy Brief Archive ppb_72, Levy Economics Institute.
    9. Dimitri B. Papadimitriou & Edward Chilcote & Gennaro Zezza, 2006. "Are Housing Prices, Household Debt, and Growth Sustainable?," Economics Strategic Analysis Archive sa_jan_06, Levy Economics Institute.
    10. Dimitri B. Papadimitriou & Anwar Shaikh & Claudio H. dos Santos & Gennaro Zezza, 2004. "Is Deficit-Financed Growth Limited? Policies and Prospects in An Election Year," Economics Strategic Analysis Archive 04-4, Levy Economics Institute.
    11. Philip Arestis & Elias Karakitsos, 2003. "How Long Can the U.S. Consumers Carry the economy on Their Shoulders?," General Economics and Teaching 0306003, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitri B. Papadimitriou & L. Randall Wray, "undated". "Fiscal Policy For the Coming Recession: Large Tax Cuts are Needed to Prevent a Hard Landing," Economics Policy Note Archive 01-2, Levy Economics Institute.
    2. L. Randall Wray & Dimitri B. Papadimitriou, "undated". "Understanding Deflation: Treating the Disease, Not the Symptoms," Economics Public Policy Brief Archive ppb_74, Levy Economics Institute.
    3. Dimitri B. Papadimitriou & Anwar Shaikh & Claudio H. dos Santos & Gennaro Zezza, 2004. "Is Deficit-Financed Growth Limited? Policies and Prospects in An Election Year," Economics Strategic Analysis Archive 04-4, Levy Economics Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lev:levysa:02-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elizabeth Dunn (email available below). General contact details of provider: http://www.levyinstitute.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.