Rise of Household Debt and the Great Recession in the US: Comparative Perspectives

Yk Kim

No 2017_03, Working Papers from University of Massachusetts Boston, Economics Department

Abstract: The Great Recession has provided an important intellectual challenge to both post-Keynesian and mainstream economists. In this article, we survey the influential post- Keynesian views on the rise of household debt in the US, as well as the Atif Mian and Amir Sufi’s studies, perhaps the most influential and empirically oriented studies of mainstream economics. We highlight some of the commonalities and differences between them. By examining both post-Keynesian and Mian and Sufi’s views together, this paper emphasizes that, although there are clear differences between them, a careful examination reveals valuable complementarity which yields a better understanding of the rise of household debt in the US and the Great Recession.

Keywords: household debt; the Great Recession; relative income hypothesis; inequality; securitization; subprime mortgage (search for similar items in EconPapers)
Pages: 45 pages
Date: 2017-09
New Economics Papers: this item is included in nep-hme and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:mab:wpaper:2017_03

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