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The Portuguese Households' Indebtedness

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  • José Alves
  • Rita Pereira

Abstract

Since the 2008's nancial crisis authorities have been particularly aware about the necessity of being provided with early warning indicators regarding nancial stability. In fact, the Basel Committee on Banking Supervision suggests the analysis of the di erence between the private sector credit-to-GDP ratio and its own long-term trend. For the past two decades Portugal, has witnessed a dramatic indebtedness increase among household. Our objective is to examine the reasons for this increase by analysing the ratio of domestic credit to the private sector to GDP between 1961 and 2011. The main conclusions are the non-suitability of the Basel Committee on Banking Supervision approach for Portugal and the break of the link between deposits and credit from 1992 onwards. Key Words : Households Indebtedness, Early Warning Indicators, Credit.

Suggested Citation

  • José Alves & Rita Pereira, 2017. "The Portuguese Households' Indebtedness," Working Papers Department of Economics 2017/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp072017
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    References listed on IDEAS

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    Cited by:

    1. Gómez-Puig, Marta & Sosvilla-Rivero, Simón, 2018. "Nonfinancial debt and economic growth in euro-area countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 56(C), pages 17-37.

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    More about this item

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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