Debt relief programs can prevent deep recessions from "summary" of House of Debt by Atif Mian,Amir Sufi
Debt relief programs play a crucial role in preventing deep recessions. When households are burdened with high levels of debt, they are forced to cut back on spending to service their debt obligations. This reduction in consumer spending can have a cascading effect on the economy, leading to a decrease in overall demand and ultimately causing a recession. By providing debt relief to households, policymakers can help alleviate the financial strain on individuals and free up disposable income that can be spent on goods and services. This increase in consumer spending can help st...
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