| Description |
1 online resource |
| Series |
IMF Working Paper ; WP/19/258 |
|
IMF working paper ; WP/19/258.
|
| Contents |
Cover -- Contents -- Abstract -- I. Introduction -- II. Macro-Financial Risks from High Household Debt -- III. Impact of High Household Indebtedness on Consumption -- IV. Stress Testing Household Debt Repayment Capacity -- V. International Experience: Measures to Contain Household Vulnerabilities -- VI. Conclusions and Policy Implications -- References -- Boxes -- Box 1 -- Box 2 -- Annexes -- Annex 1. Household-Level Regression Results -- Annex 2. Province-Level Regression Results |
| Summary |
High household indebtedness could constrain future consumption growth and increase financial stability risks. This paper uses household survey data to analyze both macroeconomic and finanical stability risks from the rapidly rising household debt in China. We find that rising household indebtedness could boost consumption in the short term, while reducing it in the medium-to-long term. By stress testing households' debt repayment capacity, we find that low-income households are most vulnerable to adverse income shocks which could lead to signficant defaults. Containing these risks would call for a strengthening of systemic risk assessment and macroprudential policies of the household sector. Other policies include improving the credit registry system and establishing a well-functioning personal insolvency framework |
| Notes |
Online resource; title from PDF title page (IMF, viewed Sept. 11, 2020) |
| Subject |
Debt -- Social aspects -- China
|
|
Risk management -- China
|
|
Debt -- Social aspects
|
|
Risk management
|
|
China
|
| Form |
Electronic book
|
| Author |
Guo, Wei, author
|
|
He, Yun, author
|
|
Jurzyk, Emilia M., author
|
|
Rendak, Nadi, author
|
|
International Monetary Fund, issuing body.
|
| ISBN |
1513522361 |
|
9781513522364 |
|
