Flow of Funds Figures Show the Largest Drop in Household Borrowing in the Last 40 Years

Gennaro Zezza

Economics Strategic Analysis Archive from Levy Economics Institute

Abstract: The Federal Reserve's latest Flow of Funds figures reveal that household borrowing has fallen sharply lower, bringing about a reversal of the upward trend in household debt. According to the Levy Institute's macro model, a fall in borrowing has an immediate effect--accounting in this case for most of the 3 percent drop in private expenditure that occurred in the third quarter of 2008--as well as delayed effects; as a result, the decline in real GDP and accompanying rise in unemployment may be substantial in coming quarters. For further details on the Macro-Modeling Team's latest projections, see the December 2008 Strategic Analysis Prospects for the U.S. and the World: A Crisis That Conventional Remedies Cannot Resolve.

Date: 2008-12
New Economics Papers: this item is included in nep-mac and nep-pke
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.levyinstitute.org/pubs/sa_jan_09.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.levyinstitute.org/pubs/sa_jan_09.pdf [301 Moved Permanently]--> https://levyweb.bard.edu/pubs/sa_jan_09.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:lev:levysa:sa_jan_09

Access Statistics for this paper

More papers in Economics Strategic Analysis Archive from Levy Economics Institute
Bibliographic data for series maintained by Elizabeth Dunn ( this e-mail address is bad, please contact ).