Wednesday, April 11, 2012

IMF: Household Debt Leads to More Severe Recessions

Daniel Leigh, senior economist at the IMF, told CNBC, "we looked at 25 economies over the last 30 years and each time there was a recession or a housing bust, countries where there was a bigger build up in household debt had a much more painful recession, unemployment went up more, GDP fell significantly more and stayed lower for up to five years."

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