One of the key questions for the time after the pandemic will be how fast households will start to consume again, once the uncertainty has been removed. A major driving force behind the anaemic recovery and low inflation after the Financial Crisis of 2008 was that households were overleveraged and were struggling to pay down their debt. Since then, many households have reduced their mortgages or sold their houses and became renters again and banks have been much more conservative in lending to new buyers. All that has helped delever households, so that when we come out of this crisis, consumers should be in a much better position to ramp up consumption again.
Where does the stimulus go?
Where does the stimulus go?
Where does the stimulus go?
One of the key questions for the time after the pandemic will be how fast households will start to consume again, once the uncertainty has been removed. A major driving force behind the anaemic recovery and low inflation after the Financial Crisis of 2008 was that households were overleveraged and were struggling to pay down their debt. Since then, many households have reduced their mortgages or sold their houses and became renters again and banks have been much more conservative in lending to new buyers. All that has helped delever households, so that when we come out of this crisis, consumers should be in a much better position to ramp up consumption again.