Jean-Noël Barrot, Erik Loualiche, Matthew Plosser, Julien Sauvagnat, 21 October 2016

In the years preceding the Great Recession there was a dramatic rise in household debt in the US, and an increase in import competition triggered by the expansion of China and other low-wage countries. This column uses consumer credit data to argue that these phenomena are intimately linked. Household debt levels increased significantly in counties where US manufacturing jobs shifted overseas, and regional exposure to import competition explains 30% of the cross-regional variation in the growth in household debt.

Richard Dale, 27 November 2008

Recent events have not been kind to the modern financial market structure. This column blames the prevailing consensus amongst finance academics for underestimating the irrationality and instability involved. Has the discipline failed to understand global financial markets?

Events

CEPR Policy Research