Business Cycles & Household Debt are Surely First Cousins
The Great Recession of 2009 demonstrated that a slowdown of economic activity can be predicated on rising household debt. This was specifically true in the USA but not exclusively. Recorded Household Debt to GDP ratios rose vigorously through 2002 & 2007. These gallant numbers correlated strongly with increases in unemployment through 2008 & 2011. […]