Canada : Selected Issues

Publication Date: February 14, 2013
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Summary: This paper assesses the impact of high household debt on economic volatility in Canada. The debt per se may not necessarily be a risk for economic activity; it can amplify other shocks as well. A few studies have emphasized the link between the growth of household debt before 2007 and the severity of the Great Recession. Economies with debt tend to experience more severe housing busts and recessions. If household debt ratios are not stabilized, the vulnerability of the Canadian economy is likely to be high.
Series: Country Report No. 13/41
Subject(s): Article IV consultation reports | Household credit | Debt | Private consumption | Housing prices | Commodity prices | Global competitiveness | Macroprudential Policy | Selected issues | Canada

Publication Date: February 14, 2013
ISBN/ISSN: 9781475587050/1934-7685 Format: Paper
Stock No: 1CANEA2013002 Pages: 60
US$18.00 (Academic Rate:
US$18.00 )
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