Current Issues in Economics and Finance

Debt, Delinquencies, and Consumer Spending

February 1997Volume 3, Number 3
JEL classification: E21, E44

Author: Jonathan McCarthy

The sharp rise in household debt and delinquency rates over the last year has led to speculation that consumers will soon revert to more cautious spending behavior. Yet an analysis of the past relationship between household liabilities and expenditures provides little support for this view.

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