Evolution and Importance of the Consumption Credit in Chile

Andrea Butelmann and Oscar Landerretche

Journal Economía Chilena (The Chilean Economy), 1998, vol. 1, issue 2, 005-018

Abstract: Consumer debt, both with the commercial and the financial sector, has been rising quickiy during the past decade. Both economic authorities and analysts are worried about high consumer debt growth although the roots of this preoccupation are seldom made explicit. This article attempts to identify the macroeconomic effects that high consumer debt growth may cause. Both International cross-country and Chilean time-series evidence suggest that Chilean consumer debt is not abnormally high and that its rate of growth was declining even before the start of the Asian crisis. Consumer debt is shown to the the most procyclical credit category, a finding that has implicationsfor the effectiveness of monetary policy. Finally the paper provides preliminary evidence showing that more access to credit by larger consumer groups may have had some negative effects on prívate saving.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://si2.bcentral.cl/public/pdf/revista-economi ... 2dic1998p005-018.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchec:v:1:y:1998:i:2:p:5-18

Access Statistics for this article

Journal Economía Chilena (The Chilean Economy) is currently edited by Álvaro Aguirre, Sofía Bauducco and Andrés Fernández

More articles in Journal Economía Chilena (The Chilean Economy) from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Fredherick Sanllehi ().