GDP Growth, Private Debt and Monetary Policy

Gianluca Cafiso

No 6500, CESifo Working Paper Series from CESifo

Abstract: Economic research has considered Private Debt a determinant of GDP growth for years. By keeping this perspective, the objective of this work is to understand how much of the GDP response to a monetary shock is due to the variation of private debt. This is the marginal contribution of private debt, which we relate to an increase of the aggregate demand. We study the USA, the UK and Germany in the period 1980q1-2015q4. Our approach is based on the comparison of one baseline structural VAR with one counterfactual for each country. The analysis is developed using the two main constituents of private debt: households and corporations debt.

Keywords: private debt; GDP; monetary policy; structural VAR (search for similar items in EconPapers)
JEL-codes: E44 O11 O16 O51 O52 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6500

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