Credit Growth and the Financial Crisis : A New Narrative ∗

@inproceedings{Albanesi2017CreditGA,
  title={Credit Growth and the Financial Crisis : A New Narrative ∗},
  author={Stefania Albanesi},
  year={2017}
}
  • Stefania Albanesi
  • Published 2017
A broadly accepted view contends that the 2007-09 financial crisis in the U.S. was caused by an expansion in the supply of credit to subprime borrowers during the 2001-2006 credit boom, leading to the spike in defaults and foreclosures that sparked the crisis. We use a large administrative panel of credit file data to examine the evolution of household debt and defaults between 1999 and 2013. Our findings suggest an alternative narrative that challenges the large role of subprime credit in the… CONTINUE READING