Where Has the Money Gone: The State of Canadian Household Debt in a Stumbling Economy
AbstractIncreasing debt of Canadian households has been a subject of intense discussion for a good number of years. In the current economic situation, thought, the topic of household indebtedness is rapidly becoming a more critical area. This paper seeks to understand the extent to which the 2008 economic and financial crisis worsened financial positions of Canadian households. To that end, the paper imparts the key findings of the public opinion survey commissioned in 2008, considers changes in the main indicators of household indebtedness, and discusses the implications of the economic shocks on indebted households. The analysis shows that the measures of financial wellbeing of the household sector have deteriorated significantly over 2007 and particularly in 2008. Stagnant or even declining income, slow and lengthy process of rebuilding financial wealth and increasing real debt-service burden make the prospects of improving households’ financial situation in the near future low.
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Bibliographic InfoPaper provided by Certified General Accountants Association of Canada in its series Working Papers with number 090503.
Length: 128 pages
Date of creation: May 2009
Date of revision:
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Postal: Suite 100, 4200 North Fraser Way, Burnaby, British Columbia V5J 5K7, Canada
Web page: http://www.cga-canada.org
More information through EDIRC
household debt; household finances; savings; wealth; household spending; income shock; assets price shock;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
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