Kobayashi, Keiichiro, (2017), “Persistent economic slowdown and emergence of debt-ridden borrowers”, VoxEU, 2 May
There is concern about the persistent slowdown of economic growth in the aftermath of financial crises. This column presents a framework which shows that excessive debt accumulated by firms and households during a crisis can cause persistent stagnation. Relief from excessive debt has a direct impact on economic growth, whereas unconventional monetary and fiscal policies cannot directly solve the fundamental debt problem.
- Batini, Nicoletta, Melina, Giovanni, Moreno Badia, Marialuz, Villa, Stefania, (2017), “The Role of Fiscal Policy When Private Debt is High”, EconoMonitor, 15 March
- Philip Du Caju, François Rycx, Ilan Tojerow, (2016), “Unemployment risk and over-indebtedness”,ECB WP No. 1908, May