Tipping Points III: Debt-Financed Homeownership – Its Evolution, Impact, and Future
2018-12-06 13:19:38Papers from Tipping Points III: Debt-Financed Homeownership – Its Evolution, Impact, and Future
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Papers from Tipping Points III: Debt-Financed Homeownership – Its Evolution, Impact, and Future
In a new paper, Prof. Bezemer explains how the shift of debt issued to fund "unproductive" rather than "productive" investments explains the global financial and economic development of the past three decades.
Orthodox theory focuses on the reallocation of real resources through trade and ignores the financial and balance sheet aspects of trade. However, global imbalances not only lead to an unsustainable buildup in external debt but also lead to a buildup in domestic debt, especially private sector debt.
Since the 2008 financial crisis, more attention has been paid to debt in systemically important institutions and in aggregate classes of borrowing. However, how much do we know about the kind of debt that burdens the most vulnerable Americans?
