Debt restructuring is crucial for sustainable growth from "summary" of House of Debt by Atif Mian,Amir Sufi
Debt restructuring plays a critical role in fostering sustainable economic growth. When households and businesses are burdened with high levels of debt, their ability to spend and invest in the economy is constrained. This can lead to a downward spiral of reduced consumption, decreased investment, and ultimately, economic stagnation. By restructuring debt, borrowers are given the opportunity to adjust their payment schedules, interest rates, or even principal amounts in order to make their debt more manageable. This can alleviate financial stress on households and businesses, freeing up resources that can then be used for spending and investment. In turn, this can stimulate economic activity, creating a positive feed...
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