Consumption Response to Aggregate Shocks and the Role of Leverage

May Rostom investigates the relationship between mortgage leverage and consumption around the 2008 financial crisis.  She identifies that the reduction in credit supply is the most important driver of the empirical co-movement between leverage and consumption growth after 2008.

Ms Rostom’s research is her own and does not necessarily represent views of the Bank’s committees.

Publication

Image courtesy of interviewee. May 14, 2018

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