EconPapers    
Economics at your fingertips  
 

Leverage interactions: a national accounts approach

Rodríguez-Vives, Marta and Celestino Giron

No 19, Statistics Paper Series from European Central Bank

Abstract: The policy focus on excessive leverage in the euro area has raised interest in developing comprehensive analytical approaches to better understand the interrelationship between leverage and deleveraging processes across economic agents. In particular, the interplay between government debt and private leverage is attracting increasing attention in the current context of simultaneous deleveraging adjustments. However, analyses of the subject are generally partial in that they fail to take into account feedback effects on balance sheet positions across economic agents. This paper attempts to clarify these cross-agent interlinkages by examining concepts, relationships and restrictions taken from the national accounts framework. Hence, the paper presents a mechanism that captures how increased leverage in certain agents contributes, ceteris paribus, to a reduction in leverage in the rest of the economy. The novelty of the underlying framework for leverage behaviour is that it takes the financial assets held by agents into consideration. JEL Classification: E01, E62, H3, H6

Keywords: balance sheet approach; indebtedness; leverage; national accounts (search for similar items in EconPapers)
Date: 2017-01
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpsps/ecbsp19.en.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:ecb:ecbsps:201719

Access Statistics for this paper

More papers in Statistics Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

 
Page updated 2019-01-17
Handle: RePEc:ecb:ecbsps:201719