On December 8, 2010, Karen Dynan made a presentation for the Macroeconomic Advisers, LLC 109th Quarterly Outlook Meeting entitled “Household Deleveraging and the Outlook for Consumer Spending.”
Dynan discussed trends in household deleveraging, saying that deleveraging has held back the recovery, but it’s unclear that it will hold down future consumption independent of wealth effects. Over the longer-run, she concludes, deleveraging will leave households in a more sustainable position and reduce the likelihood of another crisis.
Commentary
Household Deleveraging and the Outlook for Consumer Spending
December 8, 2010