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Household debt: a cross-country perspective

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Abstract

Aggregate debt of the New Zealand household sector increased from 110 percent of household incomes in 2000 to a peak of 175 percent in 2008, and currently stands at 165 percent. The increase was large and historically unprecedented, but not exceptional compared to other countries' experience over the same period. New Zealand is one of a relatively small group of countries where the ratio of debt-to-income has fallen since the 2008/09 global financial crisis. This article reviews the international experience, and discusses some of the explanations for the rise in household debt across countries, together with some specific New Zealand factors.

Suggested Citation

  • Chris Hunt, 2014. "Household debt: a cross-country perspective," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 77, pages 1-13, October.
    • Handle: RePEc:nzb:nzbbul:oct2014:01
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    References listed on IDEAS

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    1. Phil Briggs, 2012. "Financial accounts and flow of funds," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 26-35, December.
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    6. Calista Cheung, 2011. "Policies to Rebalance Housing Markets in New Zealand," OECD Economics Department Working Papers 878, OECD Publishing.
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    Cited by:

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    2. Detzer, Daniel, 2019. "Financialization made in Germany: A review," IPE Working Papers 122/2019, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
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    5. Diega Caprara & Riccardo De Bonis & Luigi Infante, 2018. "Household wealth in Italy and in advanced countries," Questioni di Economia e Finanza (Occasional Papers) 470, Bank of Italy, Economic Research and International Relations Area.

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