Housing, Credit and the Economy.
The US housing downturn and credit crunch affect economic activity through the decline in residential construction and through the negative impact on consumption of lower house prices and reduced credit availability. These issues were intensively discussed at the Federal Reserve's recent Jackson Hole Symposium. Drawing on these discussions, this paper suggests a US recession is not inevitable, even with the large housing collateral effects on consumption suggested by recent estimates. The pap...Expand abstract
- Economic Outlook
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